Cost tracing-allocation-drivers and related issues
Managerial Accounting
Can you help me get started with the following:
Discuss the importance of cost tracing? Cost Allocation? How do they differ and how are them similar? Define a cost driver? Choose a day to day event that you might use these tools to properly budget yourself, and to see where you might be overspending or underspending.
Discuss what are the primary accounting methods a manufacturing company may use in product cost flows. Does cost allocation come into play when employing these accounting methods? When would a manufacturer choose one over the other? Is one better than the other? In one paragraph start a manufacturing company making lemonade, choose one of the primary methods of accounting to trace your costs of goods sold, then compare to the other primary method and determine which is better.
