A case study of the development, installation and operation of a standard cost system for a paper converter

It is the purpose of this paper to describe in detail the development, installation and operation of a standard co8t system for a paper converting operation and the utilization of the information gathered through the operation of the system. Beginning with the nature of the business organization and the physical operations performed, the general accounting records will be considered. Follow­ ing a brief description of various methods of cost account­ ing, several reasons will be given for selecting standard costs. The methods used in developing standards will be explained and the results will be interpreted. Various means of controlling the operations of the company through information secured by this system will be discussed