Eddison Electronic Company (EEC) provides electricity for several states in the United States. You have been employed as a cost accountant at this organization. As an expert in costing methods, in this assignment, you will be comparing and contrasting the following:
- Full costing or absorption costing
- Variable costing
- Target costing
- Life cycle costing
- Activity-based costing
Research each method, and respond to the following questions:
- What is the definition of each costing method?
- Discuss how, when, and if the costing method could be used by EEC.
- Discuss the advantages and disadvantages of the costing method as it relates to EEC.
- After your research is completed, provide a recommendation on which costing method is the best for the growth of EEC.