Project Description: Costing of Products

For the product costing purposes, the company has been using traditional costing method and using the machine hours to allocate all the indirect costs of production as the company did not wanted to implement a new costing system and incurring expenses on account of that as the company was already earning heavily. But the given proposal from the overseas buyer has put the owner and the business in some thinking and thereby now they are thinking of implementing the activity based costing system to find out the reason for the overseas buyer’s preference for