There are three mothods of costing. FIFO, Average Cost and LIFO:
On the tax side:
If you use average cost for tax purposes, when an item is sold, the income for tax purposes will be the (selling price) - (the average cost). This margin is usually higher than in the LIFO method because the cost of acquiring goods usually goes up over time. Under the LIFO method you get to report the (selling price)-(cost of most newet uint). Clearly the income reported for this amount will be less than the income reported using the average costing method thus decreasing your income tax burden for the current year.
On the financial reporting side (net-income):
If you use average cost, the income that you make will be as above, the selling price minus average cost. This margin is lower than in the FIFO method. Again, because the cost of goods usually goes up over time. Under the FIFO method, you will use (selling price) - (cost of the oldest unit). This amount will be higher than the amount reported under average cost thus increasing your reported net income for the current year.
The advantage to average cost is that your reported income may fluctuate less year over year.
It is also worth mentioning that:
The major disadvantage of target costing is the lack of customer expansion. Target costing focuses on a narrower marketing group.
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What ARE the disadvantages of standard costing?
definition of target costing
Target costing is when you have a goal for the project and its costs. Absorption costing is when you need to fix the excess spending.
for backflush costing and target costing?" Refer this link www.iugaza.edu.ps/users/shelles/Horngren/ch14.ppt
Job Order Costing Operation Costing Normal Costing Actual Costing Standard Costing Kaizen Costing Target Cost
process costin and target costing
Standard costing will be the price for something. Mostly in every store. The target costing is when one says what one is willing to pay and they can negotiate the cost.
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Please help me in nswering this question
The advantages are that you will be able to get more things for the business. The disadvantages are that they are a lot of costs.
they diffrent methods