{"id":93490,"date":"2022-09-05T15:10:42","date_gmt":"2022-09-05T15:10:42","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/companies-choose-their-costing-method-based-on-their-business\/"},"modified":"2022-09-05T15:10:42","modified_gmt":"2022-09-05T15:10:42","slug":"companies-choose-their-costing-method-based-on-their-business","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/companies-choose-their-costing-method-based-on-their-business\/","title":{"rendered":"Companies choose their costing method based on their business"},"content":{"rendered":"<div>\n<p>\u00a0<\/p>\n<p>Companies choose their costing method based on their business activities and processes, as well as the products and services they offer. A company can be a manufacturing, merchandising, or service organization; this also impacts which costing method will be most useful for its purposes. As a part of costing, the company also needs to decide how to classify overhead costs using either traditional or activity-based costing (ABC).<\/p>\n<p>In this written assignment, you will choose a company, consider its business and costing requirements, and recommend a costing system that will work best for the business.<\/p>\n<h2>Prompt<\/h2>\n<p>Think about a company you know. This could be a current or past employer or a company you admire. Consider its business activities and the type of products and services offered. Based on what you have learned so far, write a short paper that reflects on the different costing methods and speculates on how they might apply to your selected company.<\/p>\n<p>Specifically, you must address the following rubric criteria:<\/p>\n<ul>\n<li><strong>Company Overview<\/strong>: Identify the company you selected and provide a brief overview of its business.\n<ul>\n<li>Is it a manufacturing, merchandising, or service organization?<\/li>\n<\/ul>\n<\/li>\n<li><strong>Costing Methods<\/strong>: Compare the job order and process costing methods, and explain how each of these can be applied to the company.\n<ul>\n<li>How could the costs differ if one method is chosen over the other?<\/li>\n<\/ul>\n<\/li>\n<li><strong>Factory Overhead<\/strong>: Outline possible indirect or overhead costs the company may need to account for, and identify the type of costing the company might use for these costs.\n<ul>\n<li>If the company decides to use activity-based costing (ABC), what are some activity bases (cost drivers) it might use to allocate these costs?<\/li>\n<\/ul>\n<\/li>\n<li><strong>Recommendation<\/strong>: Based on your analysis, recommend a costing method for the company, and explain why you think this method will work best for the business.<\/li>\n<\/ul>\n<h2>Guidelines for Submission<\/h2>\n<p>Submit your assignment as a 2- to 4-page Word document. Sources should be cited according to APA style.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Companies choose their costing method based on their business activities and processes, as well as the products and services they offer. A company can be a manufacturing, merchandising, or service organization; this also impacts which costing method will be most useful for its purposes. As a part of costing, the company also needs to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-93490","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/93490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=93490"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/93490\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=93490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=93490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=93490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}