回复: 國慶連假首爾找飯咖或一起逛

Topics: Cost accounting, Cost, Manufacturing Pages: 1 (282 words) Published: August 24, 2014
The accuracy of cost system information for reported product costs is essential for managers who use it to make decisions regarding pricing and whether or not a particular product line should be continued or dropped. The emergence of activity-based costing (ABC) has emerged to help in decisions where the number of products is large and thus decisions are not independent. Proponents of ABC argue that traditional product-costing systems are obsolete and should be replaced. The author of this article contends that there is no right or wrong system to use, and that the system should be chosen according to circumstance.

In the case of stock valuation for manufacturing companies, a simplistic product-costing system may be appropriate. However, for product pricing decisions, managers may choose long-run product costs. Overall the argument leans toward sophisticated systems since the possibility of undercosting would lead to the acceptance of unprofitable business. In addition, companies with high overhead should opt for sophisticated systems so as to avoid distorted product costs.

Where product introduction/abandonment decisions are infrequent (small number of products in line), a cost-accumulation system that assigns only direct costs to products is most useful. In this case it is more likely to treat product decisions as being independent.

The cost system design is an important component of the management accounting system within an organization. Through a broader examination of the content and use of cost systems to support management decisions via questionnaire, this publication will hope to determine whether the need to establish stock values influences cost system design in manufacturing organizations. It will then also be possible to gain insight as to what cost information companies use to assess profitability of their product lines.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • 翻譯一段小說 Essay
  • 怎样写一篇好的Research Proposal Essay
  • 國際企業戰略 Essay
  • 陳國宗會計師 Essay
  • 解析《嫁妆一牛车》 Essay
  • 领导学复习范围 Essay
  • 从会计行业造假看伦理道德的构建 Essay
  • 分析中國綠色消費的障礙因素及對策 Essay

Become a StudyMode Member

Sign Up - It's Free