Accounting for manufacturing: identifying the links between markets, production and costing systems

In opposition to arguments that suggest that standard costing systems are anachronistic and that there is a general need for the introduction of new accounting systems, this article outlines a comprehensive framework for assessing the suitability of different costing systems, including standard cost, for particular manufacturing environments. It then illustrates the continued relevance of a standard costing system at a firm where simple modifications to the accounting and management information system have enabled the firm to monitor variety and reductions in stocks.