Golden Wolves Statue Company

Costing Systems (Milestone #2) 50 points

Corey discussed his business plan with a number of his business professors. His former marketing professor agreed to provide marketing support for one year for free. In addition, his management professor and accounting professor each agreed to serve as consultants for one year for free.

His accounting professor asked Corey to develop a budget for Golden Wolves Statue Company. Corey remembered that there were a number of different costing systems that he could use to create the budget. As he recalled, he could use job order costing, process costing or activity based costing.

Assignment: Which type of costing system is Golden Wolves Statue Company most likely to use? Please make sure to define the different types of costing systems and explain why the one you would pick is the one that works for this type of business. You will have already read about Job Order Costing in Chapter 2 and Process Costing this week in Chapter 4. Although Activity Based Costing is described in Chapter 7, read the definition on page 311 of your text now to determine what it is and whether it is the proper costing system to use in this situation.

Rubric:

Criteria	Novice	Competent	Proficient	Exemplary
All costing systems defined Weight: Up to 30 points	Did not fully meet requirements. 0 to 20 points	Definitions for each of the three costing systems that may be missing some components and/or examples. 21 to 23 points	Clear definitions of the three costing systems. May not have included clear examples. 24 to 26 points	Fully defined all three costing systems with clear examples. 27 to 30 points
Choice of Costing System Weight: Up to 20 points	Did not fully meet requirements. 0 to 12 points	Correct costing choice was made but not fully or clearly explained. 13 to 14 points	Correct costing choice was made with some explanation. 15 to 16 points	Correct costing choice was made with full explanation. 17 to 20 points

book is Maneragal accounting edition17 by ray h garrison