Determine the various approaches to product costing, Accounting Basics

Assignment Help:

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.

 

 

 


Related Discussions:- Determine the various approaches to product costing

A store receives $400 cash after offering a chain, A store receives $400 ca...

A store receives $400 cash after offering a chain discount of 10/10/5 on a good. What was the list price? A. $492.20 B. $519.82 C. $533.33 D. $612.00

Shareholders and investors, Shareholders and Investors: as shareholders an...

Shareholders and Investors: as shareholders and the other investors have invested their wealth in a business activity, they are interested in understanding periodically regarding

Example of income statement of a merchandising firm, Q. Example of Income s...

Q. Example of Income statement of a merchandising firm? To recapitulate the more important relationships in the income statement of a merchandising firm in equation form -

Holding companies, how the minority interest will be calculated?

how the minority interest will be calculated?

Accounting theory, Hi i just need the solution of case study.

Hi i just need the solution of case study.

Show adjustments for deferred items, Q. Show Adjustments for deferred items...

Q. Show Adjustments for deferred items? This segment discusses the two types of adjustments for deferred items asset/expense adjustments and liability/revenue adjustments. In t

Income statement, Hermann Industries is forecasting the following income st...

Hermann Industries is forecasting the following income statement: Sales $10,000,000 Operating costs (excluding depreciation and amortization) 5,500,000 EBITDA $4,500,000 Depreciati

What is effective collection?, Its depends on the credit period of the comp...

Its depends on the credit period of the company i.e. A company credit period 30 days 85 of the debtors collection should be recovered with in credit period. We can say the Effectiv

Explain accounting entity concept, Q. Explain Accounting entity concept? ...

Q. Explain Accounting entity concept? Business entity concept (or accounting entity concept). Data assemble in an accounting system relates to a specific business unit or entit

What is reconciliation?, You should have recorded in your cash books all am...

You should have recorded in your cash books all amounts you've really received and payments you've really made. Though the cash books may be incomplete as your bank may have put ex

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd