Sample proposal to develop a standard cost analysis of variances in the light ' of developments in modern manufacturing environment

Abstract

The study addresses the standard cost system and its role in cost control in light of the changes1.bat"have'taken place inthe-rnodern-rnanufacturing environment. The research problem focuses on the changes in the administrative strategies associated with modem manufacturing environment on the effectiveness of the oversight role of standard costs, and to consider the possibility of reaching as far as possible an integrated fiamework for the development of the oversight role of standard costs to fit with the strategies of the modern manufacturing environment and avoid the shortcomings inherent The importance of research stems from the rapid changes and the continuing and intensified competition among businesses at the present time are not accompanied by a similar development in the methods and tools used by the system of standard costs, which requires attention to the development of these methods so as not to disclose information that is not appropriate that may mislead or forces management to search for wrong priorities. The research aimed to determine the impact of manufacturing techniques of modem control tools on the cost elements, and then analyze the adequacy of methods used in the Standard costs under the traditional manufacturing systems for use as tools for control systems in modem manufacturing and, finally, to develop and improve the system of standard costs to become suitable for modern manufacturing techniques. To achieve the objectives of the study, the following hypotheses were tested: 1- The traditional standard cost system is not adequate as a tool for control in light of developments in modern manufacturing environment, 2- The Traditional standard costing system is still able to provide some important information and feasibility to the Administration, 3- The traditional standard cost system requires considerable development to keep pace with modem manufircturirrg environment. Afier discussing these hypotheses, the researcher obtained a number of results; the most important are as follows: 1- The cost-accounting standard lagged behind the changes and developments in manutacturing technology, making it not viable for use in the modem manufacturing environment. 2- The traditional standard cost system is still able to provide important information relevant and useful to the deparmrent, 3- The traditional standard costing system requires development to keep pace with the modem manufactrnirrg environment. Based on the results of the study, the researcher recommends a number of recommendations