Question: This unit discussed various costing methods, such as job order costing, process costing, and activity based costing, that a manufacturing company can use to ensure

This unit discussed various costing methods, such as job order costing, process costing, and activity based costing, that a manufacturing company can use to ensure that its financial information is accurate and relevant.

As an accountant for a manufacturing company, your manager is asking for your input in making a decision about the type of costing method that should be used for a new product line under development. Answer the following questions:

  • What type of information would you need about this new product line to make this decision?
  • How does each piece of the requested information influence your decision?

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