Costing the "Quicker$-$Picker$-$Upper"

If you have ever spilled milk, there is a good chance that you used Bounty paper towels to clean up the mess.

Procter & Gamble $($P&G$)$ manufactures Bounty in two main processing departments$-$Paper Making and Paper Converting. In the Paper Making Department, wood pulp is converted into paper and then spooled into $2,000-$pound rolls. In the Paper Converting Department, two of the $2,000-$pound rolls of paper are simultaneously unwound into a machine that creates a two$-$ply paper towel that is decorated, perforated, and embossed to create texture. The large sheets of paper towels that emerge from this process are wrapped around a cylindrical cardboard core measuring eight feet in length. Once enough sheets wrap around the core, the eight foot roll is cut into individual rolls of Bounty that are sent down a conveyor to be wrapped, packed, and shipped.

In this type of manufacturing environment, costs cannot be readily traced to individual rolls of Bounty; how$-$ever, given the homogeneous nature of the product, the total costs incurred in the Paper Making Department can be spread uniformly across its output of $2,000-$pound rolls of paper. Similarly, the total costs incurred in the Paper Converting Department $($including the cost of the $2,000-$pound rolls that are transferred in from the Paper Making Department$)$ can be spread uniformly across the number of cases of Bounty produced.

P&G uses a similar costing approach for many of its products such as Tide detergent, Crest toothpaste, and Dawn dishwashing liquid.

Do you agree with the costing approach used by P&G to cost the Bounty product? Why or why not?

Would you recommend an alternate method or approach to more accurately cost this product? If so what might you change to potentially improve costing of the Bounty?