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A costing system that will work best for the business.

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

Recruitment took place at the beginning of a class period after permission had been granted by the instructor. The researcher then explained the goals of the study and distributed individual sign-up sheet to preserve the anonymity of the participants. Any student who wished to participate was welcome. The researcher hoped to recruit at least 15 participants in each section of the French phonetics course to meet the requirement for representativeness, but due to lack of enrollment, there were only 7 participants per group. The qualitative data from the participants provided rich enough data to obtain a credible picture and ensure saturation. Thus the requirements for the representativeness/saturation trade-off was met. Both groups received the same instruction in French phonetics and pronunciation. The phonetics course was held every Monday, Wednesday, and Friday for fifty minutes. Fridays were dedicated to lab work, while Mondays and Wednesdays were lectures. At the University of Illinois, French pronunciation is taught following an explicit methodology. Each phonological feature is explained in detail according to the manner of pronunciation: tongue position, jaw position, lips, etc. Data Collection Before the first phonological feature was taught, the participants completed the pre-test (Time 1). The post-test (Time 2) was completed after the instruction of the features. Both pre-test and post-test included two types of reading/recording exercises: a short text and short sentences (created by the researcher), targeting specific phonological features of French: /y/ vs. /u/, or the “silent e” (or schwa). While reading the texts and sentences, each participant was required to record themselves at Time 1 and at Time 2. The recordings took place in the phonetics laboratory at the University of Illinois, where participants can be monitored. The researcher asked the students to record themselves only once to control for repeated recordings, which may allow the students to modify their pronunciation.
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