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Standard costing vs other concepts of costing

EEC currently uses a basic standard cost system. Management knows very little about other concepts of costing and the benefits of having multiple costing methods. Your superior has asked that you and your team put together a presentation to management explaining various costing concepts as it relates to EEC.

As an EEC corporate business financial analyst, you must have an expert understanding of the various costing methods. Analyze and become an expert in at full costing/absorption costing concept within the group. Then write a paper to include the following:

the definition of the concept
how and when the concept could be used by EEC
how the application of the concept differs from the other concepts
its advantages and disadvantages
Where and how EEC could apply each concept.
The benefit EEC could gain from using of this costing methods.


Solution Summary

The answer describes in detail the meaning of standard costing, absorbtion costing, advantages and disadvantages of absorption costing, suitability of absorption costing, variable costing, advantages, disadvantages and suitabiity and purposes for which marginal costing can be applied, absorption costing vs normal costing, absorption costing vs marginal costing,absorption costing vs process costing,job costing,actual costing and meaning and steps involved in activity based costing.