JEL classification: M41, O16;
Keywords: standard costing variance, product costing, integrated information system implementation;
Abstract: The article deals with product costing in a manufacturing company and change of costing
methodology from normal to standard costing caused by a new integrated information system
implementation. The aim of the article is to show the impact of a new integrated information
system on product costing. In order to show the consequences of changing the methodology of
product costing from normal to standard costing variances between standard costing and normal
costing in an international production company were analyzed. For this research comparative
analysis was used of unit costs before and after the new system implementation for finished goods.
Ten percent of the items had a variance of more than 30% which was caused by errors in the new
system settings and mistakes in the normal costs in the old system. The impact of the change of
the costing methodology was shown by calculation of the difference between normal cost values
and standard cost values ten months after the new integrated information system implementation.
To verify the accuracy of standard costs settings, standard costs were compared to actual costs for
finished goods and semi-finished goods. In the tenth period only 30% of finished goods and 42% of
semi-finished goods showed a variance between standard costs and actual costs lower than 20%.
It means that for the rest of the items standard cost assumptions should be checked and corrected.