Standard setting is a lengthy and costly procedure.


Standards are often seen by the staff as restrictions on their behaviour which can lead to dysfunctionalism.

Reporting variances may not be timely, cost effective and encourage managerial response.

Standards invariably produce variances some of which may not be controllable eg. material prices which can result in unnecessary reporting and investigation.

Standard costing may be inappropriate for certain kinds of manufacturing eg. Just-in- Time.

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