Accounting Cases; Costing and Sunk Costs

Uploaded by : Essays-Now.com

This 8 page paper looks at two case studies supplied by the student and discusses the different accounting concepts presented in them, looks at the key learning points and considers who they may apply to other organizations. The first considers a company that increases sales, but makes a loss. The company is using absorption costing and has not accounted for costs in an effective manner. The second case looks at a company that is launching a new product and has to decide how to discontinue the older product. This case is considered in terms of sunk costs. The bibliography cites 8 sources.