Updating standard cost

The ideas in the article formed the basis for what became this book.

We appreciate the people at Quorum Books who made the book a reality, especially Tom Gannon, who urged us to write it, and Eric Valentine, who encouraged us to finish it.

Standard costs are often a part of a manufacturer's annual profit plan and operating budgets.

The folks at Microsoft made it even convenient for you to do so: All you need to do is just change the Standard Cost to whatever you like and you’re done.This book represents an attempt to integrate many new ideas and techniques that apply to cost management in the manufacturing environment of the 1990s.In addition we have tried to present original suggestions that seemed to us to be practical and workable for improving cost systems.This particular company utilizes standard cost and the inventory cost never matched their inventory G/L account.Learning about how they updated standard cost, it was very apparent what went wrong. Companies will periodically update their Standard Cost to reflect closer to what the cost of their items.

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