Modern Watch Company: An instructional resource for presenting and learning actual, normal, and standard costing systems, and variable and fixed overhead variance analysis

Farkas, Maia; Kersting, Lee; Stephens, William L.

doi:10.1016/j.jaccedu.2016.02.001

Cited by 7 publications

(2 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…SAP provides these variances. Standard costing allows management to conduct a more in-depth variance analysis for each product cost (Farkas, Kersting, Stephens, 2016).…”

Section: Discussionmentioning

confidence: 99%

“…Standard costing is one of the most widespread systems for accounting orientated towards planning and is technologically well-equipped with data processing systems like that of SAP (Heupel, 2006). Standard costing allows management to conduct a more in-depth variance analysis for each product cost (Farkas, Kersting, Stephens, 2016). Heupel (2006) pointed out seven steps of standard costing implementation and their advantages which are presented in Table 2.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

The Differences Between a Standard Costing and Normal Costing Method of Manufacturing Operating Income Calculation Caused by the Implementation of a New Integrated Information System

Fałat

2020

Folia Oeconomica Stetinensia

View full text Add to dashboard Cite

Research background: When a company changes a few separated information systems into one integrated information system there can appear the obligation of costing method change. It happens especially when the company is a part of an international manufacturing corporation. Purpose: The main goal of the paper is to compare two methods of manufacturing operating income calculation and data presentation when a company changes a costing method from normal costing to standard costing. Research methodology: In the paper for this research comparative analysis was used between two methods of manufacturing operating income calculation. In the first method manufacturing operating income is the difference between revenues from manufacturing operations and the costs of goods manufactured. In the second one manufacturing operating income is calculated as a sum of production variances, purchase price variances, currency variances and inventory adjustments. Pearson’s correlation coefficients for pairs of variables were calculated in both of the costing methods. A comparative analysis was done on the basis of a case study executed in a big international wholesaler. The company is a member of an international manufacturing corporation. Results: The same manufacturing operating incomes were obtained in both methods. The absolute values of Pearson’s correlation coefficients were similar in normal and standard costing, but they differ in directions. Novelty: In standard costing manufacturing operating income is calculated as a sum of various types of variances. They are calculated as deviations from standard costs. It enables the easier identification of impacting a company’s results factors.

show abstract

“…SAP provides these variances. Standard costing allows management to conduct a more in-depth variance analysis for each product cost (Farkas, Kersting, Stephens, 2016).…”

Section: Discussionmentioning

confidence: 99%