Standard Cost and Business Management, XYZ Company 2022

Abstract

Introduction: Standard costing is a key element in business management, as it allows for planning, control and timely financial decision-making. At company XYZ, its application has allowed for the optimisation of resource allocation and improved operational efficiency. Objective: To identify the impact of the use of standard cost in business management. Methods: An explanatory scope, non-experimental design, the techniques applied were the interview and the survey, the sample consisted of 32 employees. The SPSS statistical software was used for data analysis, which allowed the calculation of the correlation coefficient by means of Spearman's Rho coefficient. Results: It´s show that standard cost and business management have a strong positive correlation (Rho=0.722); standard cost and strategic decision making have a strong positive correlation (Rho=0.722); standard cost and operational efficiency have a moderate positive correlation (Rho=0.573); and standard cost and profitability and competitiveness have a strong positive correlation (Rho=0.784). Conclusion: The research shows that the proper implementation of standard cost generates a positive impact on business management, since it allows cost control, improves strategic decision making, improves profitability and optimizes operational efficiency.