Describe the characteristics of different cost accounting systems.
Explain the advantage and disadvantages of different cost accounting systems
Evaluate which types of businesses are best suited for a particular cost accounting system.
A new client owns and operates of manufacturing business. The client needs to set up a proper cost accounting system (e.g., job order cost, process cost, and ABC) for the business. This client is seeking general advice as to which type of system is appropriate for the business.
Discussion Question 1: Before you provide any advice, what are one or two initial questions you might ask to learn more about the business and manufacturing operations.
Discussion Question 2: The client would like you to differentiate the benefits and disadvantages of each system.
Discussion Question 3: Let's assume the client is a commercial landscape designer and contractor. Which type of system would you recommend and why?