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educed. Third it represents what and how costs should be spent. For instance, in service industries labor costs accounts for more than half percentage while in manufacturing industries material costs become more. At last, a well-developed Standard Costing system is conductive to management at all levels because it is divided into variable costs and fixed cost so that specific liability is attributed to certain departments , for example , purchasing department is liable for the material cost variance. Then segregation of responsibilities for departments and cooperation between each other is looming. Although Standard Costing improves the company's cost management capabilities, there are some deficiencies because of their own limitations and the impact of human factors. Standard Costing, per se, requires scientific and technological means to calculate the large amount of data. So it is expensive to install and consuming to, which explains why small companies consider it difficult to establish Standard Costing because of economic insufficiency（Lucey, 2002). Also maintenance of standard costing system entails high costs because standard cost has be developed for specific material and labor quantity and it must be revised with technological advances over time. In addition, it is easy to make mistakes when managers calculate costs due to the varied environment and it is difficult to set up standards because material and labor are always changing based on the direction of the market.

Overall it is prominently advantageous to apply Standard Costing to companies especially those only produce one product despite its several drawbacks. The point is that Standard Costing should be tailored to the given company, not mimic others and managers are liable for setting up their own standards according to its profit goal and market demands.

Reference

1. Alexander Berger (2011) Standard Costing, Variance Analysis and Decision-Making, GRIN Verlag , P2

2. Andreas Leitner (2004) Activity Based Costing, Germany, GRIN Verlag , P 5

3. David Wagener (2008) Activity-Based Costing and Its Later Development Into Activity Based Budgeting and Management, Germany, GRIN Verlag , P8

4. Daniel Bradtke (2007) Activity-Based-Costing,  Germany, GRIN Verlag , P 8

5. Hakan Goektuerk (2005) Activity-Based Costing (ABC) - Advantages and Disadvantages: How ABC Can be Applied to Institutions of Higher Education, Germany, GRIN Verlag , P10

6. Michael Armstrong (2003) Handbook of Management Techniques: The Best Selling Guide to Modern Management Method, British Library Cataloguing in Publication Data, P385-389

7. Noriza M.Jamal (2007) Cost & Management Accounting - An Introduction, Cataloguing in Publication Data, P286

8. Paul M. Swamidass (2000) Encyclopedia of Production and Manufacturing Management, Springer, P2-4

9. Paul M. M Collier & Samuel Agyei-Ampomah (2006) CIMA Learning System 2007 Management Accounting - Risk and Control Strategy, Elsevier Science, P56

10. Prof. Zahirul Hoque (2005) Handbook Of Cost And Management Accounting, Spiramus Press Ltd. P200

11. Robert S.Kaplan & Steven R.Anderson (2007) Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to higher profits, Harvard Business School Publishing Cooperation, P 65-本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。