Redesigning cost systems: Is standard costing obsolete?

Since the early 1980s standard cost systems (SCS) have been under attack as not providing the information needed for advanced manufacturers. In spite of the criticism, SCSs are still the system of choice in some 86% of US manufacturing firms. Updates for SCSs in the form redesigned variances, suggestions for dynamic standards, and refocused responsibility and reporting systems are presented. The compatibility of SCSs and its main competitor as a cost system, activity-based costing, is examined.