Corporations select their costing technique based mostly on their enterprise actions and processes, in addition to the services they provide. An organization is usually a manufacturing, merchandising, or service group; this additionally impacts which costing technique will likely be most helpful for its functions. As part of costing, the corporate additionally must determine find out how to classify overhead prices utilizing both conventional or activity-based costing (ABC).
On this written project, you’ll select an organization, take into account its enterprise and costing necessities, and advocate a costing system that can work finest for the enterprise.
Immediate
Take into consideration an organization you understand. This might be a present or previous employer or an organization you admire. Think about its enterprise actions and the kind of services supplied. Primarily based on what you’ve discovered to date, write a brief paper that displays on the completely different costing strategies and speculates on how they may apply to your chosen firm.
Particularly, you will need to deal with the next rubric standards:
Firm Overview: Establish the corporate you chose and supply a quick overview of its enterprise.
Is it a producing, merchandising, or service group?
Costing Methods: Evaluate the job order and course of costing strategies, and clarify how every of those could be utilized to the corporate.
How might the prices differ if one technique is chosen over the opposite?
Manufacturing facility Overhead: Define potential oblique or overhead prices the corporate might must account for, and establish the kind of costing the corporate would possibly use for these prices.
If the corporate decides to make use of activity-based costing (ABC), what are some exercise bases (value drivers) it would use to allocate these prices?
Suggestion: Primarily based in your Assessment, advocate a costing technique for the corporate, and clarify why you suppose this technique will work finest for the enterprise.
Tips for Submission
Submit your project as a 2- to Four-page Phrase doc. Sources must be cited in keeping with APA type.
