Imagine that the CIO of Cool Air Inc., a ceiling fan company where you have recently been hired as an accountant, has asked you to recommend and justify an appropriate cost accounting system. This is an important opportunity for you. You recognize that the CIO knows the best method but wants to test your understanding of cost accounting and how you articulate your ideas and positions.
Compare the three costing systems in a way that highlights differences in how they would impact the company’s operations and finances.
Justify your choice of an appropriate costing system for the company that includes an explanation of the criteria that you considered and clear evidence of why it is chosen over the other methods.
Identify then analyze the most significant impact of implementing your costing system choice on company finances.
Analyze the most significant impact of implementing your costing system choice on company operations.
