•    Should EEC use a job-order costing system, which is a costing system where costs are collected and assigned to units of production for each individual job, or a process costing system, which is a costing system that accumulates production costs by process or department for a given period of time, to report the costs of this new product?

o    How are the systems different?

•    Describe how the selected system would work to track the costs of the product.

•    Identify the cost driver, and explain the process of tracking the costs.

•    Provide examples of products that EEC might offer for which a job-order costing system would be appropriate.

•    Provide examples of products that EEC might offer for which a process costing system would be appropriate.

EEC currently uses a basic standard cost system. Management knows very little about other concepts of costing and the benefits of having multiple costing methods. Your superior has asked that you and your team put together a presentation to management explaining various costing concepts as they relate to EEC (explain the usage and benefits of each).

Individual Portion

As an EEC corporate business financial analyst, you must have an expert understanding of the various costing methods. Within your groups, divide the costing concepts among the individual team members to analyze and become an expert in at least 1 costing concept within your group. Then, write a paper to include the following:

•    The definition of the concept

•    How and when the concept could be used by EEC

•    How the application of the concept differs from the other concepts

•    Its advantages and disadvantages as they relate to EEC

Choose from the following costing concepts:

•    Full costing/absorption costing

•    Variable costing

•    Target costing

•    Life-cycle costing

•    Activity-based costing

Please add your file.

Group Project (12–15 slides)

Based on the information in the Individual Project, put together a slide presentation to management that includes a summary of your research for each costing concept. Include the following:

•    The definition of each costing concept

•    Where and how EEC could apply each concept

•    The benefit EEC could gain from using each of these costing methods

This presentation should provide recommendations to management on implementing multiple costing methods

Please add your file.