Managerial Accounting HI5017 Assignment: Article Reflection Report

This report reflects on two articles concerning costing methods used by companies, focusing on standard and target costing. The student analyzes the implementation and feasibility of these methods, concluding that target costing is more efficient in the competitive business world. The report details the challenges faced during research, including finding relevant articles, and highlights the importance of proper costing methods for a company's profitability. It also explores the implementation processes and the differences in their application across different countries. The analysis emphasizes the role of costing methods in cost reduction, revenue generation, and overall business sustainability, offering valuable insights into managerial accounting practices.

Running head: REFLECTION ON ARTICLES
REFLECTION ON ARTICLES
Name of Student
Name of University
Author’s Note

1REFLECTION ON ARTICLES
ANSWER TO QUESTION 1:
I have considered two articles while writing this report. The two articles basically provide
an insight regarding the costing method that the company considers while launching new
products. I have observed that the implementation of the costing method is mostly done by the
manufacturing companies. The two articles also discussed about the feasibility of using the both t
costing method. The two articles that I have mentioned and explained in the report provide me a
complete idea about the two costing method i.e. standard costing method and target costing
method. The articles also cleared the idea about the process how company implement the
different costing methods in their system. It is also evident from the articles that the changing in
the costing method can only be done when the management of the company has complete control
over the operations of the company. The cost reduction process is also one of the integral parts of
the costing method that assists the company to reduce the cost and increase the sales revenue and
the profitability of the company.
After analyzing the first articles I was adamant that the standard costing method is the
best costing method that assists the company to maintain the control in the system, but after
reading the second article I have changed my decision. The process of changing the costing
method in the company is clearly explained in the second article. After comparing both the
articles I came into conclusion that target costing method is much more efficient in comparison
to the standard costing method in the competitive business world.
The main difficulty that I faced while conducting the report was the selection of the most
favorable costing method that will help the company to sustain in this competitive business
world. To handle this difficulty I have read both the articles thoroughly and then came into
conclusion.
The articles have provided a complete view about the acceptance of the costing methods
and how the company uses them for their own benefits. The importance of the costing methods
can also be identified from the articles. The different approach of the costing method is also one
of the learning parts that I have acquired from the articles. The importance of the standard
costing method and the target costing method can be understood from the report. Thus, the
review of two articles provides me useful insights about the different costing methods.
ANSWER TO QUESTION 2:
The phase where I have gathered knowledge from the searching and reading of articles
can be termed as the most phase of this research curriculum. The research work led me to learn
about the new things and new costing methods. The research work also assists me to identify the
best costing method that is mostly accepted by the companies around the world for competing in
modern business world.
The most difficult part of the research work was to find the suitable article or journal for
this report. After searching for hours I have found the suitable articles that fulfill the
requirement. The problem arises when the articles related to the implementation of costing
method in real life company were nowhere to be found. To mitigate such problem I have
searched the portal and internet more thoroughly.
After searching for long hours, I have realized the importance of the research and the
effort required for conducting the research. I have went through many articles and found out that

2REFLECTION ON ARTICLES
the proper implementation and choosing of costing method is very important for the company. It
is the costing method that decides the company’s profitability in a single financial year.
The absence of proper article that deals with the real life company and the
implementation of the standard costing method and the target costing were nowhere to be found,
so I have to compromise the requirement and searched most probable article.
The main challenge that I have experienced was the time restrictions and lack of
knowledge in the field of research. I have gained much knowledge from the research activity and
I have also understood that I need to improve my research skills, so that if I have to conduct
same kind of task then I can easily cop up with the process. Overall it was a great experience.
ANSWER TO QUESTION 3:
After analyzing the standard costing method and target costing method it was evident that
target costing method is more suitable costing method that the company can adopt to maintain
their sustainability in this competitive world. The target costing method assists the company to
reduce the costs and increase the sales revenue of the company. The implementation of the target
costing requires considerable amount of steps as compared to the standard costing. These steps
assist the company to cover all kinds of costs that are associated with the production process of
the company. On the other hand, the standard costing only considers the direct labor, direct
material and manufacturing overhead. Standard costing method does not consider the market
price. The absence of market price in the calculation of the cost planning led to the rise in the
problem that ultimately affects the company’s revenue structure. I have also learned about the
implementation process of the standard costing and target costing method in the company. The
target costing method is stated to be one of the most acceptable costing methods because the
company can analyses the both internal and external factors of the company. This analysis assists
the company to create a most stable cost plan that assist the company to earn more revenue from
their respective business. I have also learned about the difference in usage of the costing methods
in western countries and in Asian countries. The approach of the implementation of the costing
method is also considered to be different in western countries and in Asian countries.

3REFLECTION ON ARTICLES