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Cost Behavior IP2

Cost Behavior IP2

Deliverable Length:  400–600 words

Respond to the scenario below with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.

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.

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