Process Costing Essay example
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Finance & Accounting
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Process Costing Name: Grade Course: Tutor’s Name: Date: Outline Introduction……………………………………………………………………….….3 Importance of the Study………………………………………………………….……

Introduction

Companies need to know the amount of money spent on their products before they can set appropriate selling prices. Firms that fail to accurately determine process costs can find themselves setting too low prices that lead to losses or too high prices that scare away customers. Accurate process costing helps to set right prices or adjust the process if costs cannot allow reasonable pricing. Importance of the Study Although many researchers have contributed to this topic, little can be seen in terms of standardization of the approaches of determining process costs. This paper is a literature review aimed at determining major points of divergence that have prevented standardization of process costing methods. Four scholarly articles are analysed to determine gaps, discrepancies and common grounds in relation to process costing. The paper will make suggestions on the best way forward as well as lay ground for future research. Literature Review One of the articles reviewed is a research study done by Cooper and Slagmulder aimed at determining process costing methods used by different Japanese firms (2002). ...
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