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The reduced use of standard cost systems

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Why are some firms dropping standard cost systems? Explain

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This solution explains various reasons for which firms are no longer using the standard cost system.

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Why are some firms dropping standard cost systems? Explain

The firms are dropping the standard costing system because of the following reasons:

1. The standards can be of basic, ideal, current or attainable standards and it is difficult for the firms to attain the proper standards. Even if the standards are fixed, it is difficult to enforce as the conditions in the market keep on changing. For example, the company has fixed the standard ...

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