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Abstract
This study handled the application level of standard costs system in
industrial companies, how to prepare and implement it in those companies, the
nature of goals to be achieved, and to find out the obstacles or reasons that
prevent applying it in other companies. This has been handled, which was
through a distributed questionnaire over 51 industrial companies. The researcher
adopted the analytical descriptive approach in analyzing the research problem.
The importance of this study is due to being the first study in this subject in Gaza
Strip. It focuses on the level of control application over production cost factors
using the standard cost system. The researcher reached to a result that 51% of the
subject industrial companies are using the standard cost system meanwhile 49%
are not. The researcher reached to the following findings:
Firstly; Companies that do not adopt standard costs
1. The Management of those companies have no conviction or
understanding of the importance of the standard cost system.
2. Lack of technical, managerial and the running style efficiency caused
the disability to prepare and apply the standard cost system.
3. Lack of continuous data about the actual cost caused the standard cost
system not to be applied.
Secondly, Companies that adopt standard costs
1. The standards costs are prepared on sound and objective basis.
2. Reports of variance between standard and actual costs are prepared by
those companies.
3. The reports of variances are dealt with truly and objectively.
4. The reasons and the responsibility of variances are determined and
analyzed using scientific methodologies.

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Garrison, R. H. and Eric W. Noreen, Managerial Accounting, Mc

43.

Graw- Hill, Ninth Edition, USA, 2003

Garrison, Ray H., Managerial Accounting, IRWIN, Sixth Edition,

44.

USA, 1991.
Introduction to

Gary L. Sundem,

T. and

Horngren, Charles

45.

Management Accounting, Prentice-Hall, Inc., USA, 1990.

-
Brown, George , Standard costs - an effective tool for business,

46.

2000.
Brown, George, Standard costing - a status check,1999.

47.

International Federation of Accountants, United States of America,

48.

Perspectives on Cost Accounting for Government International- Public

Sector Study, 2000.

220

49.

Lamminmaki, Dawne & Drury, Colin, Budgeting and standard

costing practices in New Zealand and the United Kingdom, 2002.

50.

Morelli, Beata & Wiberg,

Carl-Joachim, The Standard Costing

System At SKF, A Case Study Of A Swedish Manufacturing

Company,

Master Thesis No 2002:4- Graduate Business School,

School of Economics and Commercial Law, Gteborg University, 9

December 2002.
51.

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221

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