Is the Main Purpose of Standard Costing to Apportion Blame

question 24

Essay

Is the main purpose of standard costing to apportion blame for adverse variances? Discuss.
You may use the interaction between each director 'Management Accounting in action' on page 478 in Chapter 12 to illustrate this answer if you wish.

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Definitions:

Analyzed

The process of examining and breaking down data or information in order to gain better insight and make informed decisions.

Chronological Record

A documentation of events in the order of their occurrence.

Source Documents

Original records that contain the details to support business transactions entered in an accounting system, like invoices, receipts, and contracts.

Credited

The recording of an increase in liabilities, revenues, or equity accounts, or a decrease in assets or expense accounts.