Managerial accounting is the technique for recognizing, checking, evaluating, translating and passing on information to the business directors for meeting the goals of the organisation. In this way several viewpoints like activity-based costing, planning and standard costing, out of which standard costing has been chosen for fulfilling the purpose behind the report. The initial part would give a short survey of the standard costing concerning the business affiliations (Langfield-Smith et al. 2017). The second part would be established on two research articles ontandard costing and the inspiration driving these two articles would be explored regarding standard costing. Finally, the report would find out the effects and outcome of these two articles that will prove to be advantageous for management accountants.
The standard costing is a system that utilises standards for expenses and wages for the purpose of controlling with the assistance of different analytical process. To be more precise standard costing helps in choosing the proportion of expense to be caused under particular working conditions. Standard expense could be portrayed as an arrangement to determine the expense for units. This approach is recognized all around as a reasonable instrument in association with cost control in mechanical sections (Posteuc? et al. 2018). Notwithstanding the way that standard expenses and planned expenses are used a portion of the time on the other hand, planned expenses construe the general arranged expenses for various things. Therefore, the standard costing system gives a basis of budgetary control stock valuation, work in progress and setting a selling value
In light of the above explanation, it has to be listed down the different intentions of the standard costing technique and they are recognized as follows:
Figure 1: Standard costing system
Keeping in mind the end goal to assess the utilization of standard costing in the business associations, two diary articles have been chosen for fitting the reason for this area. The two articles are as follows:
Article 1: “Effects of Standard Costing on the Profitability of Telecommunication Companies: Study of MTN Nigeria”
Article 2: “Implications of Standard Costing System in Manufacturing: A Case Study”
The brief explanation of these two studies for the exploration of standard costing is demonstrated briefly as follows:
Article 1:
This paper is proposed to investigate the impact of standard costing on the advantage level of the MTN telecommunication relationship to check whether the applying the strategies for the standard costing would affect efficiency. This would help in finding the connection between standard costing and benefit of telecommunication firms nearby seeing if the Nigerian MTN Telecommunication Company has gotten this technique. The researchers have furthermore communicated that standard costing is a technique for execution examination, which is utilized by standing out genuine execution from the standards for each and every operational district inside the affiliation (Maskell et al. 2016). This is coordinated in exchange with the different pioneers of the various leveled segments. This article revolves around MTN Nigeria, which is the best individual from a South African affiliation, MTN Group having different overall assistants. The vision of the relationship in Nigeria is to twist up the fundamental master center in telecommunication division and its vision is to pass on the best framework quality, customer regard and organization. It has been perceived that advantage is fundamental to guarantee the achievement of any business affiliation and the telecommunication business is one of the snappiest creating portions on the planet.
It is important for the affiliations working in the telecommunication division to place assets into structure, apparatus, programming and collaborations for giving quality organizations to the customers in order to guarantee such improvement plan,. The purchaser quality, rising mechanical advancement and globalization has left these relationship with a bundle of alternatives than to make interests in the above explained things (Eldenburg et al. 2016). Along these lines, the administrators working in these affiliations are confronted with issues concerning cost minimisation so the general salaries and advantages could be expanded. A part of the basic issues considers acquisition of the best in class item adapt like raising exchanging of advantages, wandering, transmission and others, center around programs yielding more imperative salaries like promoting organizations, advancements, considering creative arrangements, commitment organization and cost decreasing procedure.
By thinking about, the telecommunications region of Nigeria, the paper is relied upon to find the courses through which these issues are directed and the manner in which advantage level is affected by the equality of the levels of different sorts of advantages and liabilities. In like manner, the examination went for finding the examples in advantage in the part over the customers for lighting up essential administration by approach makers and theorists (Fullerton et al. 2014). In light of such assessment, the accompanying examination questions have been set out for investigating the theme:
Article 2:
This article is revolved around discussing the consequences of standard costing structure in light of a relevant examples. The study of those examples is incorporated with watching out for a particular circumstance. As demonstrated by the study, there has been basic decline in income from sale of ASL between first March 2014 and 28th February 2015 due to the failure of standard costing system in keeping an eye on the business needs, as communicated by the Operations Manager of the affiliation. Notwithstanding the way that the structure assisted with saving the expense of production process, it has been a dissatisfied change and likewise solving the issues of the individual customers (Armitage et al. 2016). In this manner, it has suffered loss in revenue for ASL. With a particular ultimate objective to address the point of view of the administrator, the Chief Financial Officer (CFO) of the affiliation has requested to give an essential examination from the drawbacks and advantages of the standard costing system. Along these lines, with a particular ultimate objective to give the feedback to the CFO, a low down depiction of the standard costing structure has been fused into this article.
According to the professional, the standard costs for staffs, materials and distinctive expenses are planned depending upon organization appraisals of costs, work use and materials close by planned produced volume and overhead costs. Finally, fitting recommendations have been given so the perceived issues could be settled in ASL by recalling the problems raised by the Operations Manager of the affiliation (Szychta and Dobroszek 2016). In view of the above assessment, the accompanying exploration questions have been produced for this paper:
There are certain similarities that has been observed in the findings of two studies and they are as follows:
In both the articles, a thorough description of the standard costing structure has been given. The experts of both the articles have communicated that the distinctions gotten by using the standard costing system could be overviewed execution appraisal, explanations behind cost control and assessing. In this one of a kind circumstance, it ought to be said that standard costing covers an immense bit of the methods of managerial accounting that mull over obligation accounting declaration and additionally planning system (Parker and Fleischman 2017).
In both the articles, the researchers have given a sensible portrayal of the great circumstances and basic in standard costing structure. A bit of the typical advantages said in both the articles join the accompanying:
In any case, certain basic difference in the revelations of the two studies are indentified and they are indicated rapidly as takes after:
Certain outcomes have been perceived that could be significant for the general population filling in as administration accountants in the Australian firms and two of them have been distinguished from the main article (Zoni 2017). They are explained rapidly as takes after:
It has been perceived that MTN could get expanded cost control, if it sets standards for each one of the costs caused and after this; the variances and exceptions could be included if there ought to emerge an event of models where there are differentiates between the arranged circumstance and the genuine circumstance. The distinctions give a beginning base with a particular true objective to condemn the feasibility of administrators to control the costs for which they are dependable (Ji 2017). For instance, in the production house of MTN, it is acknowledged that the genuine material cost of $52,015 have gone past the standard costs by $6,015. It is useful for the administration accountants to understand that the material costs have outperform by $6,015, instead of realizing that the genuine material cost indicated $52,015.
In perspective of this information, the management could determine the reasons for the increase of genuine cost over standard cost and in like manner, exercises could be endeavored for amending the same. Additional examinations would disclose whether the distinction happened in light of insufficient material use or higher costs in perspective of expansion or inadequate purchase. In either case, standard costing system gives early banner by revealing insight into the potential risk for helping the administration of the affiliation.
It is found that if the practices and standards of the standard costing structure are gotten and they are practiced in MTN Nigeria, it would go about as a mechanical assembly to updateok the general advantage level. This requires the prerequisite for managerial arranging and likewise essential administration. Accordingly, the administration needs to figure effective cost standards close by controlling administration costs so the standard costs can be at par with the future genuine costs. It would help the administration accountants in detailing more correct spending plans and in anticipating costs to offer on occupations.
From the second article of Eisenberg (2016), two essential outcomes been important for the administration accountants of the Australian affiliations incorporate the accompanying:
It has been studied that the standard costing structure gives easy process to calculate stock with the genuine cost system. This is because of with the assistance of standard costing system, cost initiative method could be served by considering compelling cost control limits. In case of genuine cost structure, the unit costs for gatherings of equivalent things most likely won’t be indistinguishable with each other. For instance, difference could happen in light of machine glitch, which may expand work and overhead costs. In standard costing system, these costs would not be considered in stock (Hiebl 2018). Or maybe, such costs would be charged to distinction accounts after the separation between standard costs and genuine costs.
With the assistance of standard costing system, it is possible to confine the costs of creation. Exactly when the standard costs are used, they would fabricate the cost familiarity with the agents close by looking for overhauled procedures for task finishing. If the laborers are dynamic in limiting costs, it is possible for the business also to control cost.
Conclusion:
From the above study, basically standard costing system is a vital gadget of managerial accounting, which helps the chiefs of the business relationship in limiting cost and recognizing contrasts with the genuine cost so remedial exercises could be endeavored. The two articles picked reveal a comparative circumstance, as this costing system ends up being significant in improving the efficiency of the affiliations. In this manner, the use of standard costing structure in an extensive variety of business affiliations expect an imperative employment in upgrading their general advantage.
Reference
Armitage, H.M., Webb, A. and Glynn, J., 2016. The use of management accounting techniques by small and medium?sized enterprises: a field study of Canadian and Australian practice. Accounting Perspectives, 15(1), pp.31-69.
Eldenburg, L.G., Wolcott, S.K., Chen, L.H. and Cook, G., 2016. Cost management: Measuring, monitoring, and motivating performance. Wiley Global Education.
Fullerton, R.R., Kennedy, F.A. and Widener, S.K., 2014. Lean manufacturing and firm performance: The incremental contribution of lean management accounting practices. Journal of Operations Management, 32(7-8), pp.414-428.
Hiebl, M.R., 2018. Management accounting as a political resource for enabling embedded agency. Management Accounting Research, 38, pp.22-38.
Ji, X.D., 2017. Development of accounting and auditing systems in China. Routledge.
Klychova, G.S., Faskhutdinova, ?.S. and Sadrieva, E.R., 2014. Budget efficiency for cost control purposes in management accounting system. Mediterranean journal of social sciences, 5(24), p.79.
Langfield-Smith, K., Smith, D., Andon, P., Hilton, R. and Thorne, H., 2017. Management accounting: Information for creating and managing value. McGraw-Hill Education Australia.
Maskell, B.H., Baggaley, B. and Grasso, L., 2016. Practical lean accounting: a proven system for measuring and managing the lean enterprise. Productivity Press.
McLean, T., McGovern, T. and Davie, S., 2015. Management accounting, engineering and the management of company growth: Clarke Chapman, 1864–1914. The British Accounting Review, 47(2), pp.177-190.
Miller-Nobles, T.L., Mattison, B. and Matsumura, E.M., 2016. Horngren’s Financial & Managerial Accounting: The Managerial Chapters. Pearson.
Nuhu, N.A., Baird, K. and Appuhami, R., 2016. The association between the use of management accounting practices with organizational change and organizational performance. In Advances in Management Accounting (pp. 67-98). Emerald Group Publishing Limited.
Parker, L.D. and Fleischman, R.K., 2017. What is Past is Prologue: Cost Accounting in the British Industrial Revolution, 1760-1850. Routledge.
Posteuc?, A., Ahuja, I.P.S., Khamba, J.S., Bodek, N., Budugan, D., Georgescu, I., Burnham, D.C., Burrows, G., Chenhall, R.H., Carlson, C.R. and Wilmot, W.W., 2018. Standard costing in Japanese firms: Reexamination of its significance in the new manufacturing environment. In Manufacturing Cost Policy Deployment (MCPD) Transformation: Uncovering Hidden Reserves of Profitability(Vol. 25, No. 7, pp. 709-756). Hoboken, NJ: Marcel Dekker.
Szychta, A. and Dobroszek, J., 2016. Perception of Management Accounting and Controlling by Polish Authors in Publications in 1990–2016. In Proceedings of the 5th International Conference on Accounting, Auditing and Taxation (ICAAT 2016), ed. J. Alver, Tallinn, Atlantis Press. DOI (Vol. 10).
Zoni, L., 2017. Management accountants in Italy: economic, institutional and educational environment, and evidence from the job market. In The Role of the Management Accountant(pp. 137-155). Routledge.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download