Determine the various approaches to product costing, Accounting Basics

Details: Costing products is a matter of considerable importance to organizations. The need for accurate product costs ranges from cost identification for inventory valuation purposes, through to profitability analyses and strategic considerations. From the accounting standards perspective, a product's cost comprises direct material, direct labour, and a "fair share" of factory overhead. Consequently, many downstream and upstream costs are excluded from the accounting standard approach. Furthermore, as environmental considerations loom larger for manufacturing firms, environmental material and process costs are increasingly seen as requiring greater identification and consideration in product costing. Product disposal costs have also become a critical issue for organizations in many circumstances. Suggestions have been made that the accounting standard approach to product cost should be expanded to enable firms to more readily address profitability and strategic matters.

Required: Examine the literature to identify the different perspectives on how a product's cost may be formulated. Assess the strengths and weaknesses of the various approaches to product costing that have been proposed, and assess which might be useful in ensuring that management accounting fulfils a more strategic role in manufacturing organizations.

 

 

 

Posted Date: 3/20/2013 5:41:42 AM | Location : United States







Related Discussions:- Determine the various approaches to product costing, Assignment Help, Ask Question on Determine the various approaches to product costing, Get Answer, Expert's Help, Determine the various approaches to product costing Discussions

Write discussion on Determine the various approaches to product costing
Your posts are moderated
Related Questions
Q. Salary potential of accountants? Selecting a major represents much additional than the choice of courses a student takes in college. To a significant degree, the student's m

define accounting. Briefly explain its concepts

stpes to be taken prepaing for final accounts

If my company sells 4000 shares of common stock for $86,400, how do I record this in the Journal?

Revenues emerge in the Income Statement credit column of the work sheet. The two revenue accounts in the Income Statement are credit column for Micro Train Company are service reve

what is the accounting?

on 10/15 the academy agreed to teach a four month class (beginning immediately) to an individual for $2,200 tuition per month payable at the end of the class. the class started on

Q. Illustrate lower-of-cost-or-market method? Procter & Gamble markets a broad range of paper, cleaning, beauty care, health care, food, laundry and beverage products around th

Q. Choosing an accounting career? How companies have a choice in inventory cost methods among specific identification, LIFO, FIFO and weighted-average. Likewise one of the grea

Enumerate the term- Cash discounts Offered to encourage prompt and early payment by buyer. Cash discounts are recorded in accounting records of both the buyer and the seller. S