Updating Standard Cost Systems [Hardcover]

Carole B. Cheatham (Author), Leon R. Cheatham (Author)

Book Description

Publication Date: March 30, 1993 | ISBN-10: 0899307167 | ISBN-13: 978-0899307169

The new manufacturing environment requires new cost-accounting systems as well as new technology. While some authorities have advocated installing new and untried systems, the authors of this book recommend updating the standard cost system which 85 percent of manufacturing firms have in place. Updating the present system can achieve greater benefits in terms of providing information to managers for decision making. It also allows the organization to avoid disruption to the corporate culture and the cost associated with a new system. The authors show how standard cost systems can be redesigned to measure factors recognized to be important in today's manufacturing environment such as quality, production levels, and throughput. They demonstrate how standard cost systems can foster continuous improvement through dynamic rather than static standards. After examining characteristics of the new manufacturing environment and benefits of upgrading the cost system, ways to update the traditional standard cost system are discussed. Revisions include a unique input-output method of variance analysis, specific metrics related to manufacturing performance, ways to identify cost drivers, and use of dynamic standards. The authors demonstrate how to redesign the information-gathering and reporting system as new manufacturing procedures are put in place. They discuss ways that marketing activities are affected and how to plan plant and equipment expenditures in an automated environment. This book is directed primarily towards accountants and managers needing to improve informational content of accounting data for decision-making purposes. It should also be beneficial to any person within the business firm who either supplies data of this type or uses it, such as project analysts, controllers, managers, and even management trainees. Academicians teaching cost and managerial accounting as well as those teaching production management and financial decision-making courses should find it beneficial as a text supplement or as a primary text in courses dealing with current problems in today's changing manufacturing environment.

Editorial Reviews

Review

“In 13 chapters the authors present an impressive array of improvement possibilities including revisions of variance measures and the introduction of the cost driver concept into standard cost systems. A very useful book for advanced undergraduate and graduate-level study.”–Choice

About the Author

CAROLE B. CHEATHAM is Professor of Accounting at Northeast Louisiana University.

LEO R. CHEATHAM is Associate Professor of Finance at Northeast Louisiana University.

Product Details

• Hardcover: 256 pages
• Publisher: Quorum Books (March 30, 1993)
• Language: English
• ISBN-10: 0899307167
• ISBN-13: 978-0899307169
• Product Dimensions: 9.2 x 6.3 x 0.9 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Amazon Best Sellers Rank: #1,712,800 in Books (See Top 100 in Books)

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