Standard Cost Accounting System As An Aid To Management Control And Planning

Standard Cost Accounting System As An Aid To Management Control And Planning

Abstract

Accounting for standard costs provides an overview of how standard costs can be an effective tool in the hands of management; it functions as a tool for planning, coordinating, and controlling various operational activities within an organization.

The standard costing system has been investigated in order to highlight its contribution to management planning and control. It has been discovered that it facilitates the proper operation of an organization and the attainment of its goals and objectives. The established standards govern the organization’s operations.

Variations are analyzed and investigated when they are discovered, and standards are revised subsequently. The study reveals that it is a very useful management tool for planning and controlling operations so as to attain the organization’s goals and objectives.

This study utilized a questionnaire, personal interviews, and a review of the organization’s manual to analyze the topic and provide recommendations.