Reflective Journal on Costing Methods - HI5017, Holmes Institute

This reflective journal analyzes two peer-reviewed articles on costing methods, specifically standard costing and target costing, often used by manufacturing companies before launching new products. The journal discusses the benefits and drawbacks of each method, focusing on efficiency and implementation. The author reflects on their learning process, highlighting the challenges of selecting the most favorable costing method and the difficulties in finding relevant articles. The journal emphasizes the advantages of target costing in a competitive business environment, its sustainability, and its impact on profit margins, while also acknowledging the easier implementation of standard costing. It also explores the differences in costing method implementation between Asian and Western companies. The author concludes that target costing is more efficient than standard costing. The journal includes references to the articles used.

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

1REFLECTION ON ARTICLES
ANSWER TO QUESTION 1:
The report which I have provided were consists of two peered articles that were
based on the standard costing and target costing. The two articles were about the
costing methods that companies around the world adopt before launching new product
in the market. The use of the costing methods are mostly adopts by the manufacturing
concerns around the world. The articles that were discussed in the report mainly states
about the benefits and loss that the company many realize while after adoption of the
costing methods. The articles that I have mentioned were about the benefits that each
costing methods bring to the company. The discussion regarding the efficiency of the
costing method was also being provided in the report. I have also learned the same
while preparing the report. The report also clears the idea about the process of
implementation of the costing method by the company in its system. I have also learned
about the stringent process that the companies go through while changing the costing
method in the system. I have also learned about the main purpose behind the change in
the costing method. As per my observation, the management of the company usually
opts for the change in the costing method in the company. The cost reduction is the
main agenda behind the change in the costing method. The reduction of the cost mainly
assists the company to increase their revenue, which in turn assists the company to
realize more profit (Kidwell et al 2016). Thus, costing method is the tool that helps the
company to gain more profit from the market.
After reading and analyzing the articles, I was sure that target costing method is
much more beneficial for the company than the standard costing method. In the
competitive business world the efficiency of the target costing method is much more in
comparison to the standard costing method.
The main problem that I have encountered while preparing the report was the
selection of the most favorable costing method. Standard costing method is also
considered as the most favorable costing method, which have the ability to reduce the
cost by considerable means. Like target costing method, standard costing method also
proves its efficiency in this competitive business world. The article on standard costing
method also states the same thing.
The article review provides me a complete insight about the target costing
method and standard costing methods. The implementation of the costing method was
also being understood from the review of the article. The benefits and loss that both the
costing method brings in the system were also understood.
ANSWER TO QUESTION 2:
The searching and reading of the articles was the most difficult phase. This is the
phase from where I have understood the importance of knowledge gathering. The
searching for the articles assists me to find the most suitable costing method that will
help the company to reduce their costs and increase their profit margin. The report
assists me to identify the modern trend that the company uses to select the best costing
method in this competitive business world.
Another main problem that I have faced while preparing the report was to find the
perfect article or journal that will fulfil the requirement. The article about the using or the

1REFLECTION ON ARTICLES
implementation of the target costing method was nowhere to be found. I have to spend
considerable amount of time to get the article, which states about the implementation of
the target costing method in real life company.
The article on company using the target costing method or standard costing
method in their system was not available in the net or portal. Instead I have identified
the most probable costing method article that deals with the standard costing method
and target costing method.
The time constriction was the main problem that I have encountered while
preparing the report. The report preparation assists me to develop the research skills
and also the different kinds of costing methods. The analysis of the best costing method
that can be used by the company in this competitive business world was the toughest
part (Lee et al 2014). Thus, the experience that I had gathered while preparing and
analysing the report was second to none.
ANSWER TO QUESTION 3:
The implementation of the standard costing method in the company’s system is
much easier in comparison to the implementation of the target costing method. In spite
of that the target costing method is much more efficient in comparison to the standard
costing method. The target costing method allows the company to maintain their
sustainability in the market. As per the review, it can be understood that the target
costing method assists the company to increase their profit margin. The implementation
of the target costing method in the operations of the company requires considerable
amount of time. Standard costing method, on the other hand, considers the direct labor,
direct material and manufacturing overheads (Sayer et al 2014). The item for the
standard costing method can easily availed in comparison to the item required for the
target costing method. The difference in usage of the target costing method and
standard costing method can also be understood. I was also able to pin point the
difference in the implementation and using process of costing method between Asian
companies and Western companies (Sayer et al 2014). The analysis of the best cost
plan also assists me to identify the problems that are associated with the costing
method. After analyzing both the costing method I have come into conclusion that the
target costing method is much more efficient in comparison to the standard costing
method. Target costing method considers all the cost that the company spends while
creating any product. The cost analysis under the target costing method provides better
result in comparison to the standard costing method. Thus, target costing method is
much more feasible in this competitive business world.

1REFLECTION ON ARTICLES
REFERENCE:
Kidwell, M.C., Lazarević, L.B., Baranski, E., Hardwicke, T.E., Piechowski, S.,
Falkenberg, L.S., Kennett, C., Slowik, A., Sonnleitner, C., Hess-Holden, C. and
Errington, T.M., 2016. Badges to acknowledge open practices: A simple, low-cost,
effective method for increasing transparency. PLoS biology, 14(5).
Lee, S.K., Kim, K.R. and Yu, J.H., 2014. BIM and ontology-based approach for building
cost estimation. Automation in construction, 41, pp.96-105.
Sayer, A.M., Munchak, L.A., Hsu, N.C., Levy, R.C., Bettenhausen, C. and Jeong, M.J.,
2014. MODIS Collection 6 aerosol products: Comparison between Aqua's e‐Deep Blue,
Dark Target, and “merged” data sets, and usage recommendations. Journal of
Geophysical Research: Atmospheres, 119(24), pp.13-965.