The statement “Standard Costing and Variance Analysis are appropriate to any type and size of organisation” is not true. As Drury (2009) stated “standard costing cannot be applied easily to non-repetitive activities, since there is no basis for observing and recording operations and standards cannot be set up” (Drury, 2009, p. 278). Therefore, a standard costing system is not appropriate to organizations where the production process is based on non-repetitive activities. Furthermore, establishing standards requires time and is very costly. Due to this, for small organizations it is often difficult to establish a standard costing system because of their limited financial resources. Moreover, standard costing was developed when the business environment was more stable and less vulnerable to changes. However, nowadays the business environment changes so rapidly that it is difficult to set standards for management control purpose throughout a year. In addition, the increasing automation of manufacturing processes led to a decline in direct labor costs and therefore to a corresponding decline in the importance of labor-related standard cost and variances (Needles, 2007). Therefore, manufacturing companies such as Kraft or Boeing are not using the traditional standard costing system anymore. They readjust this system only by using direct materials and overhead standards. Furthermore, in order to remain competitive in today´s environment many organizations focus on quality and customer satisfaction. However, the standard costing is more focusing on minimizing costs. Japanese production techniques such as Just-in-time and total quality management are more appropriate nowadays to many organizations because they meet the corporate objectives more effectively.