Product costing systems: Finding the right approach

Joseph G. Fisher · Kip R. Krumwiede

35 citations0/0 files storedJournal of Corporate Accounting & Finance

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Accounting and Organizational Management Accounting Theory and Financial Reporting Corporate Governance and Management

Abstract

Abstract Many product costing methods and systems exist, but having the right costing system for a given situation can be difficult. This article identifies four key questions to answer and points out the advantages and disadvantages of various cost systems to find the right balance of convenience, correctness, and implementation costs in a product costing system. Nestlé, for example, discovered that good product management, aided by better cost systems, can pay major dividends. © 2012 Wiley Periodicals, Inc.

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