Costing Methods

 

Overview
Companies choose their costing method based on their business activities and processes, as well as the products and services they offer. A company can be a manufacturing, merchandising, or service organization; this also impacts which costing method will be most useful for its purposes. As a part of costing, the company also needs to decide how to classify overhead costs using either traditional or activity-based costing (ABC).

In this written assignment, you will choose a company, consider its business and costing requirements, and recommend a costing system that will work best for the business.

Prompt
Think about a company you know. This could be a current or past employer or a company you admire. Consider its business activities and the type of products and services offered. Based on what you have learned so far, write a short paper that reflects on the different costing methods and speculates on how they might apply to your selected company.

Specifically, you must address the following rubric criteria:

Company Overview: Identify the company you selected and provide a brief overview of its business.
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.

 

 

Sample Solution

ve to be clinically diagnosed based off the patient’s symptoms. If an individual only has persistent delusions it becomes apparent to the doctor that they aren’t schizophrenic. Schizophrenic requires multiple symptoms not just delusions. A person with delusional disorder are typically fully functioning individual except for their delusional episodes. According to Belmont Behavioral Hospital, emphasizes that “This condition could have an impact on the person’s daily living, although, fortunately, it does not necessarily prevent that individual from functioning within society on an ongoing basis”. In contrast to Schizophrenia, this psychotic disorder causes patience to be more dependent on friends and family due to lack of the ability to make decisions on their own. Another, similar disorder whose symptoms have to be clinically distinguished from Schizophrenia is substance or medication induced psychotic disorder. Substance induced psychotic disorder is when a patient has been abusing a controlled substance that is mind altering. Examples of drugs that cause, hallucinations and or delusions would be LSD, Psilocybin Mushrooms, recreational marijuana, and opioids. The Substance Abuse and Mental Health Services Administration report the staggering statistic that in 2014, “approximately 1.2 million Americans are currently hallucinogenic drug users”. This goes to show the epidemic that psychiatrist have to take into account prior to clinically diagnosis an individual with Schizophrenia. The diagnosis for substance or medication induced psychotic disorder is to conduct a urine test to determine if the person is experiencing a “bad trip,” due to a controlled substance. The American Addiction Center, provides a description of a bad trip as “when brain levels of the drugs become “too” high, the effects become bizarre, and you start experiencing out-of-the-earth things”. An individuals with history of drug use that have been diagnosed with substance psychotic disorder often have recurrent bad trips even after the sobriety. It’s undeniable that mind altering drugs can lead to damaging the brain and permanently causing symptoms similar to Schizophrenia. However, Schizophrenia is typically a lifelong disorder while acute Substance Induced Psychotic Disorder symptoms with proper treatment and sobriety can go away. Schizophrenia can be linked by genetics while Substance Induced Psychotic Disorder, is due to abusing a controlled substance. Neither, are curable however, with treatment symptoms can subside or disappear. Prevalence Rates of Schizophrenia Physiatrist have observed that there is a difference in prevalence in women and men with Schizophrenia. According to Rena Li and Xi Ma, two Psychiatrist at the University of Tennessee, “Schizophrenia is more frequent in men. Female onset is typically 3–5 years later than males. It is now accepted that men has a single peak age for onset which is between 21 and 25 years old and women have two peaks age of onset, one between 25 and 30 years

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