SUBJECT: COST TECHNIQUES

Material Cost Case Study Firms use costing to determine the price of a product and to analyze the efficiency of resource consumption. These methods often comply with the external financial reporting rules set forth by the Generally Accepted Accounting Principles (GAAP), which require all manufacturing costs, including overhead, to be assigned to goods in inventory for costing purposes. Also, costing techniques used by firms to determine the cost of production, a product/service to be offered for sale tend to depend heavily on the cost elements plus profit in fixing the price. To some local producers, cost elements play not much significant role in determining the price of a product/service. Comment on this assertion. Guidelines: i. Two pages ii. Spacing 1.5 iii. Font size 12 iv. Times new roman