Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What are the main differences between Absorption vs Job-Order Costing in regards to decision making? There are millions of companies around the globe from retail

What are the main differences between Absorption vs Job-Order Costing in regards to decision making?

There are millions of companies around the globe from retail stores to fast food, from tech firms to privately owned businesses. Out of the many questions these companies have to answer day after day, one question comes to mind how do I decide on whether my company is a job-order costing or an absorption costing? I fill that each company needs to define what they intend to be offering to the public if your a fast-food chain you probably would look into having a job-order costing approach since the products they produce are so diverse. Managers have a multitude of things to accomplish but identifying what type of product are we producing and is it diverse enough to take a job-order approach or should I take the absorption costing approach and appoint the costs to individuals products.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Peter Atrill, Eddie McLaney

9th Edition

1292251255, 9781292251257

More Books

Students also viewed these Accounting questions

Question

3. Provide time for independent and extended projects.

Answered: 1 week ago