Financial Accounting Alternative Costing Method Assignment Homework Help
- September 14, 2017
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- Category: Accounting QA
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Alternative Costing Methods
The text presents job and processing costing systems as virtual polar extremes, there are many situations where it may be best for a company to use a hybrid system that combines attributes of both systems. Describe such a situation and discuss how the hybrid system may be better than either pure job or pure process systems.
Think Twice
Assume you own a business that makes two complementary products for which you allocated manufacturing overhead proportionally. A competitor is trying to undercut your price for one of the products. How might ABC costing help you better compete with this pending threat?
Activity Base Costing
a.How do managers cost products or services using ABC systems?
b.When should managers consider using an ABC costing system?
c.How should they decide to adopt this method?
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Alternative Costing Methods
Select a costing method: process, job, or activity based.
a.Describe the nature of your chosen method. What types of organizations should choose that method? How is this method different from the costing methods you did not choose?
b.I have implemented a job costing system in my company. If you were my corporate controller, how would you implement a job-costing system?
c.Why is process costing a better costing method for certain industries? What would happen if they used a job costing system?
Can we explain three major source documents and how they are used in job costing systems? Why are these source documents needed?
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