“In recent years, writers have argued that standard costing and variance analysis should not be
used for cost control and performance evaluation purposes in today’s manufacturing world. Its
use, they argue, is likely to induce behaviour which is inconsistent with the strategic
manufacturing objectives that companies need to achieve in order to survive in today’s intensely
competitive international economic environment.”
i) Explain the arguments referred to in the above paragraph concerning the relevance
of standard costing and variance analysis
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