StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - Full Costing and Variable Costing

Only on StudentShare
Masters
Essay
Finance & Accounting
Pages 8 (2008 words)
Full Costing and Variable Costing Customer Instructor Date Contents Full Costing and Variable Costing 1 Customer name 1 Course 1 Instructor 1 Date 1 Contents 2 Executive Summary 3 Main Findings 4 Direct Costs 5 Indirect Costs 6 Full Costing 6 Variable Costing 7 Summary of Full Costing and Variable Costing Components 8 Making a choice between the two 9 Conclusion and Recommendations 10 References 12 Accounting for Management, 2011…

Extract of sample

Cost Accounting: A 12 Managerial Emphasis. 12th ed. Prentice Hall. 12 Elliott Taylor, 2011. Full-Costing Income Statement vs. Variable-Costing Income Statement. [online] Available at < http://smallbusiness.chron.com/fullcosting-income-statement-vs-variablecosting-income-statement-20350.html > [Accessed 25 December 2011] 13 Jae Shim, Joe Seigel, 2011. Schaum's Outline of Managerial Accounting. 2nd ed. McGraw-Hill. 13 John Simms, 2008. The Variable Costing Income Statement for External Reporting. VDM Verlag. 13 Noah P. Barsky, Anthony H. Catanach, 2004. Management Accounting: A Business Planning Approach. South-Western College Pub. 14 Steven M. Bragg, 2011. Cost Accounting Fundamentals: Essential Concepts and Examples. 2nd ed. Accounting Tools. 14 Executive Summary Full Costing and Variable Costing are two common approaches to cost keeping employed at the management accounting level in various firms across the globe. Both approaches have their pros and cons and making a choice between the two is solely dependent upon the practices of the firm, its approach to create shareholder value and the mindset of its employees. In terms of the treatment of different types of cost, there is only one difference between the two approaches under consideration. ...
Download paper
Not exactly what you need?

Related papers

Traditional Absorption Costing versus Activity Based Costing.
In fact Geri and Ronen (2005) indicate that cost accounting systems do not normally command a high ranking in the hierarchy of most organisations, it is the information that they generate that plays a critical role in the performance of organisations and in the decision making process. The range of systems available and the claims made by the proponents of each have led to several debates.…
12 pages (3012 words)
Report On Product Costing For Dumbellow Ltd.
Furthermore, the production manager considered re-organization of production activities and also the use of a cheaper component of product Z. though all these proposals are viable; they have various shortcomings which may outweigh their expected benefit. In addition, a comparison of marginal costing and full costing (absorption costing) is dealt with in this report. The advantages of using…
12 pages (3012 words)
Contrast and Compare Absorption Costing with Marginal Costing
The Strict adherence to a particular costing method is critically important to effectively managing the finance in a firm since its management will be bale to make proper appraisal of the productivity as well as performance of various costs units in the firm. This piece of research reviews full costing and variable costing and outlines the conceptual framework and key assumptions of these cost…
8 pages (2008 words)
Variable Costing
Product cost versus period cost Also known as inventorial costs, product costs are all those costs that are used in the acquisition and production of a product. They include direct labor costs, cost of direct materials and the manufacturing expenditure (Maher et, al 2006). They are normally assigned to an inventory account in the balance sheets and released from the stock as expenditure. Period…
5 pages (1255 words)
Variable costing
Despite the various methods of pricing a firm based on its industry should select the most effective method to the firm. Costing is the main function in every firm, the rational being every firm exists in its industry with the main aim as profit making. References 8 VARIABLE COSTING Executive summary This is a report about a review of marginal costing as used in the managerial accounting system.…
4 pages (1004 words)
Process Costing
In the contemporary period, process costing is one successfully adopted accounting methodology in organizations. Organizations use process costing for effective cost calculation, especially at times when other costing models (job costing or activity based costing) are futile and not producing desired outcomes. Process costing is applied when activities like cost accumulation, cost assignment and…
7 pages (1757 words)