Why You should Move to Target and Value Stream Costing

Abstract: Standard costing remains the product costing method of choice today despite the dramatic increase in the proportion of fixed to variable costs and the added difficulties of allocating overheads. As this paper discusses, there are alternative approaches that avoid many of these problems and enable managers to better manage total costs rather than focus too narrowly on unit costs. But it means embracing lean manufacturing and overhauling the whole cost accounting system