Implementing Standard Costing in Adelaide Brighton Cement: A Management Trainee's Perspective

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1MANAGERIAL ACCOUNTING
Executive Summary:
The current report has focused from the perspective of a management trainee in a
manufacturing organisation. Therefore, the organisation that has been chosen in this paper is
Adelaide Brighton Cement, which is one of the leading manufacturers of cement in Australia
operating under Adelaide Brighton Limited. As the Finance Director of the organisation has
attended a seminar recently on standard costing, the individual intends to explore the
possibility of standard costing within the organisation. The standard costing serves as a
benchmark, which could be utilised for comparing with various standard costs. Hence,
standard costing could be considered as a base for performance measurement. This would
help in gauging performance and depending on the same; it is possible to carry out the
hypothetical financial planning. Finally, it has been analysed that the implementation of
standard costing system is deemed to be favourable for Adelaide Brighton Cement.

2MANAGERIAL ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................3
a. Description of Adelaide Brighton Cement:............................................................................3
b. Description of standard costing and its features:...................................................................4
c. Role of standard costing in facilitating controlling and planning activities in Adelaide
Brighton Cement:.......................................................................................................................8
d. Suitability of standard costing in Adelaide Brighton Cement:............................................10
Conclusion:..............................................................................................................................13
References:...............................................................................................................................14

3MANAGERIAL ACCOUNTING
Introduction:
The current report would focus from the perspective of a management trainee in a
manufacturing organisation. Therefore, the organisation that has been chosen in this paper is
Adelaide Brighton Cement, which is one of the leading manufacturers of cement in Australia
operating under Adelaide Brighton Limited. The first section would provide an overview of
the concerned organisation. Moreover, as the Finance Director of the organisation has
attended a seminar recently on standard costing, the individual intends to explore the
possibility of standard costing within the organisation. Therefore, a brief overview of
standard costing and its features would be discussed in this paper. The next section would
emphasise on the role of standard costing to facilitate planning and controlling activities in
Adelaide Brighton Cement. Finally, the report would shed light on analysing the suitability of
standard costing within the organisation by considering all the possible aspects.
a. Description of Adelaide Brighton Cement:
Adelaide Brighton Cement is involved in manufacturing and supplying cement, lime
along with pre-packaged dry blended products. The other offerings of the organisation
include mortar, concrete, render and sand products in bulk and packaged forms. The products
of the firm are sold via the stockists in Australia. The former name of the organisation has
been The S.A. Portland Cement Company, which is changed later to the current name in
1971. Adelaide Brighton Cement is established in 1911 and the head office of the
organisation is situated at Birkenhead in Australia having factory locations in Birkenhead and
Angaston. It functions as a subsidiary of Adelaide Brighton Limited (Adelaide Brighton
Cement 2019).