Valid decisions given the differences in costing


Problem: "full costing as an approach where organizations goods and services are priced in other to reflect the true cost which is expected to include social and environmental cost".

Question:

How can a production factory make valid decisions given the differences in costing? After all, we must have accurate cost data in order to identify which products are profitable.

An interesting look at this can be found at:

https://www.business.aau.dk/~hojen/index-filer/4scm/CostAccountingDistortsProductCosts.pdf

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Accounting Basics: Valid decisions given the differences in costing
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