Can you help me answer some question... plzz

1.Should the company apply absorption costing and direct costing?

2.Is traditional overhead costing or activity-based costing better in assigning overhead costs? Why ?

3.Do businesses need to set up standards for a period of accounting? Why ?

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Originally Posted by ankoi

Can you help me answer some question... plzz

1.Should the company apply absorption costing and direct costing?

2.Is traditional overhead costing or activity-based costing better in assigning overhead costs? Why ?

3.Do businesses need to set up standards for a period of accounting? why ?

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Absorption costing and direct costing are two different methods which have their own strengths and weaknesses. Direct costing is applicable when there are large shifts in volume.

Activity based costing is a method of operational analysis

What do you mean standards? are your referring to standard costing?

I would like to see your discussion of these issues

You are going to work for a manufacturing company after graduation. Your CEO asks for your advice of the following issues :
* Do the businesses need to set up standards for a period of accounting ? Why ?

Quote:

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Originally Posted by ankoi

You are going to work for a manufacturing company after graduation. Your CEO asks for your advice of the following issues :
* Do the businesses need to set up standards for a period of accounting ? Why ?

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This is an assignment and I cannot do your assignment for you

Standard costs are a method to providing control where there is complexity

OK thanks for your help...