ACC 202 Costing Methods

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.

Specifically, you must address the following rubric criteria:

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  • Company Overview: Identify the company you selected and provide a brief overview of its business.
    • Is it a manufacturing, merchandising, or service organization?
  • Costing Methods: Compare the job order and process costing methods, and explain how each of these can be applied to the company.
    • How could the costs differ if one method is chosen over the other?
  • Factory Overhead: 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.
    • If the company decides to use activity-based costing (ABC), what are some activity bases (cost drivers) it might use to allocate these costs?
  • Recommendation: Based on your analysis, recommend a costing method for the company, and explain why you think this method will work best for the business.

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