1. Define the business and costing object (usually a product, sometimes it may be the customer, product marketing, etc.). This process is very time-consuming. If the two products meet the same needs of customers, then the definition of business, customers choose more appropriate than selecting a single product.
2. Determine the cost drivers for each service (ie, the cost determinants, such as the order number).
3. Then, assign costs to each costing objects, each object is to compare costs and prices, to determine the level of its profitability.
Discuss what "wrong" decisions could be made by the management as a consequence of its current costing system? Make sure to use the case study and your profit statements to support your discussion.
Using the case study, discuss some general and specific limitations of Sunny Power's proposed system and give examples of how it can be improved.
What recommendations would you make to Eva Green. These recommendations should follow logically from your discussion in previous answers above.