You were recently employed as a management trainee in a manufacturing firm. The
Finance Director of your company had recently attended a seminar on standard
costing and would like to a taskforce was formed to explore the possibility of
implementing standard costing in the company. You were assigned to the taskforce
due to your accounting background.
Required:
Your group is required to prepare a report to comment on the suitability of standard
costing for a manufacturing company of your group’s choice (your company). The
report should cover the followings:
a) A description of your company
b) A description of the standard costing and its features
c) In what ways standard costing can facilitate planning and control activities in
your company
d) A discussion on whether the standard costing is suitable to your company
Sample Solution