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Absorption versus Variable Costing

Assignment 1: Discussion—Absorption versus Variable Costing

There are several ways a company can allocate overhead costs to products produced or services provided. Two of these methods are absorption costing and variable costing. This assignment will allow you to explore the two methods of costing and compare/contrast the different uses of each costing system.

Using the module readings and the Argosy University online library resources, research absorption and variable costing. Use your research and/or your experiences as a working professional to complete this assignment.

Respond to the following:

Explain the differences between absorption costing and variable costing. Explain, with the help of an example, how a company could use a variable costing system, as well as an absorption costing system. You have the option of using the company you work for as an example. Explain which method is better for the company being discussed. Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation

Do the following when responding to your peers:

Read your peers’ answers. Provide substantive comments by contributing new, relevant information from course readings, Web sites, or other sources; building on the remarks or questions of others; or sharing practical examples of key concepts from your professional or personal experiences Respond to feedback on your posting and provide feedback to other students on their ideas. Make sure your writing is clear, concise, and organized; demonstrates ethical scholarship in accurate representation and attribution of sources; and displays accurate spelling, grammar, and punctuation.

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Assignment 1: Discussion—Applying Balanced Scorecard

In many cases, managers end up in trouble as they direct their focus exclusively on cost savings. Cost cutting is always emphasized, but other impacts, such as decreased quality, can be overlooked. These overlooked impacts can have a significant effect on the revenue and profitability of an organization. The balanced scorecard is a measure to assure that management is not exclusively driven by cost, but balanced with other measures that also can significantly influence the performance of an organization.

Using the module readings and the Argosy University online library resources, research balanced scorecard and its application.

Select a service industry organization of your choice. Complete the following for the selected organization:

Recommend at least two performance measures in each of the balanced scorecard categories. Explain each of your recommendations. Using these measures as examples, explain how use of the balanced scorecard can increase the economic value added within the organization.

Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation

Do the following when responding to your peers:

Read your peers’ answers. Provide substantive comments by contributing new, relevant information from course readings, Web sites, or other sources; building on the remarks or questions of others; or sharing practical examples of key concepts from your professional or personal experiences Respond to feedback on your posting and provide feedback to other students on their ideas. Make sure your writing is clear, concise, and organized; demonstrates ethical scholarship in accurate representation and attribution of sources; and displays accurate spelling, grammar, and punctuation. Grading Criteria

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