Is standard costing obsolete? Empirical evidence from Malaysia

Sulaiman, Maliah and Nik Ahmad, Nik Nazli and Mohd Alwi, Norhayati (2005) Is standard costing obsolete? Empirical evidence from Malaysia. Managerial Auditing Journal, 20 (2). pp. 109-124. ISSN 0268-6902

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Abstract

Purpose – Many authors have predicted that the shorter product life cycles, advanced manufacturing technologies, decreasing emphasis on labour in the production process, and global competition may lead to the demise of standard costing. This exploratory study aims to provide empirical evidence on the extent to which companies in Malaysia use standard costing. It also examines the differences in the use of such techniques between local Malaysian firms and Japanese affiliates. Design/methodology/approach – From the industrial and consumer products sectors listed on the Kuala Lumpur Stock Exchange and 21 Japanese affiliates in Malaysia, 66 companies were surveyed. Findings – Despite its various criticisms, the empirical findings suggest that standard costing is still being used by a large majority of firms in Malaysia. Thus, Malaysian companies (both Japanese and local) perceive that the basic principles of standard costing remain sound. Research limitations/implications – While the empirical results may be interesting, the findings represent an exploratory area of research which ultimately needs to be grounded in theory. To do this, future studies should undertake detailed case studies on management accounting in practice. Originality/value – Provides empirical evidence of the extent of use of standard costing in Malaysia.

Item Type:	Article (Journal)
Additional Information:	7709/59264
Uncontrolled Keywords:	Standard costs, Malaysia, Japan, Management accounting, Cost reduction, Budgets
Subjects:	H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Dr Norhayati Mohd Alwi
Date Deposited:	14 Nov 2017 10:24
Last Modified:	14 Nov 2017 10:24
URI:	http://irep.iium.edu.my/id/eprint/59264

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