What is the use Standard Costing in Practical situation?
Standard costing is very much useful in practical world. Managers use standard costing data to analyse the production etc.
One can compate standard costing with financial statements prepared using data from transactional accounting. Standard costing is of vital use for business accounting.
For example how do you know what variance gave you loss? What cost you need to control? How effective is the production flow and controls used to measure the production wastage?
Today managers use standard costing as one of the tool to arrive at variances and analyse them.