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Product Costing Systems: Finding the Right Approach
Author(s) -
Fisher Joseph G.,
Krumwiede Kip
Publication year - 2015
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.22045
Subject(s) - activity based costing , product cost management , product (mathematics) , key (lock) , correctness , target costing , job costing , computer science , risk analysis (engineering) , cost accounting , operations management , business , economics , accounting , computer security , cost engineering , mathematics , geometry , programming language
Many product costing methods and systems exist, but having the right costing system for a given situation can be difficult. This article identifies four key questions to answer and points out the advantages and disadvantages of various cost systems to find the right balance of convenience, correctness, and implementation costs in a product costing system. Nestlé, for example, discovered that good product management, aided by better cost systems, can pay major dividends. © 2015 Wiley Periodicals, Inc.