Discussion: Presenting Costing Information
Companies can choose from different costing methods: process/product costing and activity-based costing. Think about a company you know and answer the following:
What are the differences between the two costing methods, and how do these apply to your company?
What are some ABC cost drivers the company might use?
How could the costs differ if one method is chosen over the other?
Which method would you recommend for your company, and why?