acc560 week 7 discussion 1

acc560 week 7 discussion 1 -...

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Standard costs facilitate management planning. Discuss the other advantages of using standard  costs. Besides facilitating cash planning and inventory planning, standard costs also have a number of distinct advantages  cited in favor of using standard costs in an organization as follows. First, the use of standard costs makes possible the approach of management by exception.  If actual costs remain  with the standards, no attention by management is needed.  When actual costs fall significantly outside the  standards, managers are alerted that there may be problems requiring attention and then will concentrate on these  important issues.  Thus, management by exception makes possible more productive use of management time. Second, standards that are viewed as reasonable by employees can promote economy and efficiency. They also  provide benchmarks that individuals can use to judge their own performance.  In addition, wage incentive systems 
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This note was uploaded on 02/01/2012 for the course ACCT ACC560 taught by Professor Lorij.perez during the Spring '10 term at Strayer.

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acc560 week 7 discussion 1 -...

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