Reference no: EM132632633

You have been hired as a managerial accountant by Mr. Smith of Wilson-West Manufacturing, a start-up company that produces several different product lines. He would like you to set-up the cost accounting system for the cabinet division. Listed below are your new job requirements and at least 1 task for each.

Types of costs

Question 1: Explain what types of costs you plan on using to distinguish the different types of cabinets that will be produced.

Question 2: Explain should include direct costs items, indirect cost items, as well as variable costing.

Question 3: What are at least 5 types of expenses that are associated with manufacturing the cabinets?

Cost accounting methods

Question 4: Explain how product costing is used for a cabinet division.

Question 5: Give 2 examples of how you will use product costing.

Question 6: Which costing method will you use for the cabinet division: Activity-based costing(ABC), job order costing or process costing?

Question 7: Validate your answer with 2-3 reasons for and 2-3 reasons against the other types of costing.