Traditional costing methods are still widely used today and work well in many situations, where total costs are calculated by adding variable costs to fixed costs.

However, there are times when this approach may not provide organisations with the optimal outcomes, and some organisations are embracing more innovative ways of measuring their costs and developing pricing models for their products and services.

In this discussion forum, we will look at different ways of approaching the topic of costing. For your initial post, consider the following question:

• Do traditional costing methods provide a true reflection of costs? And what innovative methods are available to produce a more appropriate approach, where necessary?

In the following discussion, you may also wish to consider the following issues:

• Are costs correctly apportioned in relation to the relevant operation being carried out?
• Is cost management carried out with a clear understanding of breakeven principles?
• What type of costing / pricing models are used in your workplace?

Answer rating: 100% (QA)

Here is my initial response to the discussion question Traditional costing methods that involve simply adding variable and fixed costs do provide a ba... View the full answer