Presenting Costing Information

Presenting Costing Information

Companies can choose from different costing methods: process/product costing and activity-based costing. Think about a company you know and answer the following:

What are the differences between the two costing methods, and how do these apply to your company?
What are some ABC cost drivers the company might use?
How could the costs differ if one method is chosen over the other?
Which method would you recommend for your company, and why?
To complete this assignment, review the Discussion Rubric document.

20190123205521rubric_discussion_undergrad__8_ (1)

Solution Preview

Different companies use different costing methods to estimates the operational costs incurred. For instance, a company may either use product costing or activity based costing. These approaches may differ across different companies depending on the cost drivers. Furthermore, the findings have proved that different costing methods may result in different costs in an organization. Activity based costing is an approach that identifies the key activities and thereby assigns the cost of each activity to all products and services in an organization.

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