摘要：The main purpose of this paper is to emphasize the benefits that the standard costmethod may have in the decision process. Managerial accounting provides cost informationneeded for decision making. Standard cost method is a system of cost accounting which isdesigned to find out how much should be the cost of a product under the existing conditions.The actual cost can be ascertained only when production is undertaken. The standard cost iscompared to the actual cost and a variance between the two enables the management to takenecessary corrective measures.Standard costing is a management control technique for every activity. It is not only usefulfor cost control purposes but is also helpful in production planning and policy formulation. Itallows management by exception. In the light of various objectives of this system, some of theadvantages of this tool are: efficiency measurement; finding of variance; management byexception; cost control; right decisions and eliminating inefficiencies.The application of this method increases the value of accounting information and improvebusiness organization. These features of the standard cost method allows the preparation ofcost budgets and setting benchmarks to better express the normal conditions of businessactivity.
关键词：cost information; standard cost; cost control; decision
