Is standard costing obsolete?
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 empir
