Application of Cost Control Systems

  • K. Midgley
  • R. G. Burns
Part of the Business Case Studies book series (BCS)


This case is concerned with the practical application of a flexible budgetary control system and the use of cost variances. It is based on the system actually used by a large public company and at first sight it may appear to represent a departure from traditional textbook examples of flexible budgets and variances. The system is indeed more sophisticated than most of the simple examples set out in textbooks, but nevertheless it embodies the same principles. We have provided detailed explanations of the circumstances associated with the calculation of standard hours and variances, and an ample amount of time should be allowed for the thorough reading of the case before the problems are attempted.


Plan Capacity Cost Centre Budget Actual Expenditure Variance Basic Wage 
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Copyright information

© K. Midgley and R. G. Burns 1972

Authors and Affiliations

  • K. Midgley
  • R. G. Burns

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