27 May Costing Methods
Order Instructions
Company Overview: Identify the company you selected and provide a brief overview of its business. USE JOHNSON AND JOHNSON
Is it a manufacturing, merchandising, or service organization?
Costing Methods: Compare the job order and process costing methods, and explain how each of these can be applied to the company.
How could the costs differ if one method is chosen over the other?
Factory Overhead: Outline possible indirect or overhead costs the company may need to account for, and identify the type of costing the company might use for these costs.
If the company decides to use activity-based costing (ABC), what are some activity bases (cost drivers) it might use to allocate these costs?
Recommendation: Based on your analysis, recommend a costing method for the company, and explain why you think this method will work best for the business.
