Different Costing Techniques, Its Uses, Tax Implications and Complexities associated with it
The organizations have choices to use the various costing techniques to achieve the high return from the management and operations. The organization can use two types of costing techniques: specific order costing technique and operation costing technique.
Specific order costing technique: This type of technique is used where the work comprises of separate jobs or contracts. Each contract is authorised by an order. This type of costing includes job, batch and contract.
Operation costing technique: This type of technique is used in the environment where goods and services are produced as a result of sequence of activities or in other words a continuous operation. In this costing methods cost is averaged over the number of units produced.
For the organizations, the operation costing technique is recommended as most of the operations in three businesses are based on the practices and approaches those are rarely changed. The organization needs to use the operation costing techniques to optimize the return from the regular operations as per our advanced accounting homework help online service providers.
The three businesses are common in term of operations as human resource management and operations to meet the organizational objectives are same. However, the operations may be different to deliver the effective customer services and supports. Therefore the operation costing techniques can be used in all businesses of the organization to enhance the productivity and performance with available set of resources (Belobaba.et.al. 2015).
The business to manufacturing white goods is required to use the operation costing as the business has large number of employees and assets those are not properly managed to achieved the optimistic performance. This is also corroborated by taxation team checking the costing aspects to get taxation homework help. In order to align the business operations and objectives on the optimum returns, it is necessary to determine the flow of finance and efforts. The business can use the operation costing techniques to analyse the cost of operations per employees and resources in workplace. Once the cost is analysed, better strategies can be made to enhance the finance flow and to organization of resources. However the issues may appear to analyse the cost on resources those are remote in nature or have rapid changes (Dhillon, 2013). The staff and resources may be rapidly replaced in section of business. The marketing demands and changes also impact the operations and in such cases, it is difficult to predict the operation cost per resource.
In commercial airlines, the customer satisfaction is the prime point of focus for organization. Most of the operations in business are aligned to meet the customer requirements and benefits in time of competitive advantages. Organization can use the operation costing to simplify the operations for the customer. This concept can be used to get business case study homework help in academics. For example the cost can be used to set up the easy online system instead of manual operations to enhance the customer satisfaction and service quality. Operation costing can be used to define the cost on order booking, customer welcoming, operations to manage the services and to deliver the market impact. The operation costing techniques can be used to determine the continuous operations in business and to define the new approaches to reduce the cost with better service management and resource allocation (Bazargan, 2016). The staff and assets can be managed effectively after analysing the cost per unit. However, the environment changes and market perception for the airline service may impact the internal operations and services for customers. As a result the cost per unit may change to meet the changes in business operations. The dynamic cost identification is also required to delimit the operation costing technique.