Problem:
EEC currently uses a 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 a presentation to management explaining various costing concepts as it relates to EEC (explain the usage and benefits of each).
Individual Portion:
As an EEC corporate business financial analyst, you must have an expert understanding of the various costing methods. Within your groups, divide the costing concepts among the individual team members to analyze and become an expert in at least one costing concept within your group. Then 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
Costing Concepts:
This the topic I pick "variable costing"