Have you ever worked in a company that utilized activity based costing, standard costing, a Just-In-Time operating environment, or any of the other costing concepts covered in our readings during this module? Describe your experience with any of these managerial philosophies and your opinion on their effectiveness.
In my workplace standard costing was used. This was the predetermined cost of performing or producing a good. These were used as target costs and were supposed to be developed from past costs. However, rumors said that the production manager reduced the past production costs by a percent and forced the standard costs on the workers. For example, the target cost of the body of a drill was set at $255. When we added all the costs that had occurred in the past the cost was $274. When we tried to manufacture the body the actual costs could go up to $280! No supervisor or team leader ...
This posting gives you a step-by-step explanation of costing concept of which I have personal experience. The response also contains the sources used.