Methods of Costing, how to identify

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November 19, 2014 at 12:57 pm #211265
vedavyas
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I have a question regarding the costing methods, in Q92 Robust Laptops, part a, asks us to evaluate the current method of costing. How do we go about identifying that, and in what scenario should we recommend the use of Target Costing, ABC Costing, Standard Costing, and any other methods.
November 19, 2014 at 6:54 pm #211366
Ken Garrett
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Last lint of paragraph 4 tells you that the company uses an absorption costing system based on labour hours.
The 14,190,000 OH costs would be divided over 23,800 units each taking 3 hours.
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