Choose ONE of the costing systems studied in this unit from the list below, and answer the questions that follow: • Job Costing • Process Costing • Operation Costing (Hybrid Costing) • Activity-based Costing (ABC) Questions: 1. Briefly discuss the features of your chosen costing system.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Part A
Choose ONE of the costing systems studied in this unit from the list below, and answer the
questions that follow:
•
•
• Operation Costing (Hybrid Costing)
• Activity-based Costing (ABC)
Questions:
1. Briefly discuss the features of your chosen costing system.
2. Identify 2 specific Australian companies that your chosen costing system is suitable for, and explain why.
3. Discuss two potential uses of the cost information for decision-making, to the managers in each of the 2
organisations selected in Q2 above.
Part B
Choose one peer reviewed journal article (from any country) on the: Use of your chosen costing system in a
real-life organisation (i.e. a case-based empirical study). The article should be published between 2005 –
2020. Choose your article only after you have accessed and reviewed several relevant articles, and then
choose the best article that will answer the questions below.
Questions:
1. Based on your chosen costing article, briefly summarise how the costing system was designed and
implemented in your real-life organisation.
2. Based on your chosen costing article, did the costing system in the study satisfy the features discussed in
Part A (Q1)? Why or why not? Include examples in your answer from your costing article.
3. Based on your chosen costing article, how useful was the cost information to the internal users in the
organisation? Discuss with examples from your costing article.
4. Based on your literature findings, state two key lessons that would inform contemporary organisations
about the practical use of your chosen costing systemPurpose:
The Individual Reflective Journal is to ensure each student is able to provide a critical reflection of
their personal learning process, as experienced during this unit. A significant aspect of the reflective
journal will be your reflections on what you learnt and experienced from your individual assignment.
Assignment Task:
1. Reflections on any topics covered in the unit that interests you the most. Why was it interesting
and what did you learn from it?
2. Reflections on what you learned from the individual assignment, including the relevance of your
chosen costing system to businesses. What insights did you gain and what had you learnt from it?
3. Reflections on your overall research experience from the individual assignment (e.g. looking for
journal articles, reading and reviewing the literature etc.) What was enjoyable, what was difficult,
and any challenges you experienced?
Assignment Structure:
The reflective journal should include the following components:
a. Assignment Cover Page clearly stating your name and student number
b. Table of contents (optional)
c. A brief introduction or overview of what the assignment is about
d. Body of the assignment with the written answers
e. Conclusion
There is to be no references provided, as these are your own thoughts, insights and experiences.
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