Standard Costing

  • W. Armand Layne


The epigraph quotation highlights the fact that standard costing was in vogue from the time man first began to think of his welfare. The dictionary defines the word ‘standard’ as ‘a definite level of excellence, attainment, or a definite degree of any quality, viewed as a prescribed object of endeavour or as a measure of what is adequate for some purpose’. An accounting definition1 is ‘A predetermined cost calculated in relation to a prescribed set of working conditions, correlating technical specifications and scientific measurement of materials and labour to the prices and wage rates expected to apply during the period to which the standard cost is intended to relate, with an addition of an appropriate share of budgeted overhead’ (ICMA, 1974).


Overhead Cost Cost Account Direct Material Standard Cost Direct Labour 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Amey, L. and Eggington D. A. (1973) Management Accounting: A Conceptual Approach (Longman) ch. 15.Google Scholar
  2. Amicucci, D. J. (1965) ‘Budget Trend Variance Reports’, Bulletin of the National Accounting Association, 46, pp. 9–14.Google Scholar
  3. Bromwich, M. (1969) ‘Standard Costing for Planning and Control’, Accountant, April, pp. 585–6.Google Scholar
  4. Dopuch, N. et al. (1974) Cost Accounting, 2nd edn, (Harcourt, Brace Jovanovich) ch. 12.Google Scholar
  5. ICMA (1974) Terminology of Management and Financial Accountancy (ICMA) p. 26.Google Scholar
  6. Noble, C. E. (1968) ‘Calculation Control Limits for Cost Control Data’, in D. Solomons (ed.) Studies in Cost Analysis, 2nd edn (Sweet & Maxwell) pp. 444–51.Google Scholar
  7. Pichler, O. (1954) ‘Probleme der Planrechtung in Der Chemischen Industrié’, in Chemische Technik, Bd 6, ss. 293–300; 316; 392–405.Google Scholar
  8. Solomons, D. (1961) ‘Flexible Budgets and the Analysis of Overhead Variances’, in H. R. Anton and P. A. Firmin (eds), Contemporary Issues in Cost Accounting (Houghton Mifflin) pp. 359–69. St Luke, ch. 14, v. 28.Google Scholar
  9. Werner, F. and Manes, R. (1967) ‘A Standard Cost Application of Matrix Algebra’, Accounting Review, July, pp. 516–27.Google Scholar
  10. Zeff, S. A. (1959) ‘Standard Cost in Financial Statements-Theory and Practice’, in H. R. Anton and P. A. Firmin (eds), Contemporary Issues in Cost Accounting (Houghton Mifflin) pp. 348–58.Google Scholar

Copyright information

© Dr W. Armand Layne and Mr Colin Rickwood 1984

Authors and Affiliations

  • W. Armand Layne
    • 1
  1. 1.Cave Hill CampusUniversity of the West IndiesWest Indies

Personalised recommendations