EEC presently uses 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 the presentation to management describing different costing concepts as they relate to EEC (describe the usage and benefits of each).
As an EEC corporate business financial analyst, you should have an expert understanding of the different costing methods.
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 as they relate to EEC
Choose from the following costing concepts:
• Full costing/absorption costing
• Variable costing
• Target costing
• Life-cycle costing
• Activity-based costing
Put a slide presentation to management which includes a summary of your research for each costing concept. Include the following:
• The definition of each costing concept
• Where and how EEC can apply each concept
• The benefit EEC can gain from using each of these costing methods
• This presentation must provide recommendations to management on implementing multiple costing methods
