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There are various costing method for companies to implement. As a company grows, it may become...

Question:

There are various costing method for companies to implement. As a company grows, it may become beneficial to consider an alternate costing method.

What should a company look for when trying to determine whether they should adopt such a system?

Costing Method:

Costing method refers to the technique or strategy used to determine the cost of production for products and services. There are various costing methods used by firms such as job costing, traditional costing, multiple costing, alternate costing and other costing methods.

Answer and Explanation:

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Companies consider an alternate costing method when it could be financially beneficial for the company. Companies should look for methods that include...

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The Effects of Financial Statements on Costing Methods

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Chapter 6 / Lesson 12
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The way you calculate the cost of your inventory can change the profit you show on your financial statement. Learn how one method can show higher profits, while the other method can give you tax benefits.


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