Must be done Monday 8-9-2013 by 6 PM CST!!! ORIGINAL WORK ONLY!!!
Wilson-West Manufacturing Company is trying to determine which costing method to implement in its new manufacturing plant. The CFO, Mr. Smith, asked you, his new managerial accountant, to explain the three following costing systems:
- Activity-based costing (ABC)
- Job order costing
- Process costing
Create a 1–2 page table, comparing the following for each of the 3 costing systems:
- What are the 3 characteristics of the system?
- Give 2 examples of a product or service that would be accounted for by each system. Explain why you chose this product or service as your example.
- Describe 2–3 advantages of each system.
- Describe 2–3 disadvantages of each system.
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