Provide at least three scholarly sources, excluding the textbook.As you read in

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Provide at least three scholarly sources, excluding the textbook.As you read in Chapter 8, there are arguments (for and against) variable costing and absorption costing. Select one of these costing methods and explore the various arguments. Determine whether you are “for” or “against” this selected method. Provide evidence from the text to support your position. Your initial post should be 200-250 words.When comparing various divisions within a company, describe what problems can arise from evaluating divisions that have different accounting methods, as described in Chapter 11 of your text. Cite three examples of accounting methods that could cause divisions' profits to differ. Your initial post should be 200-250 words. Exercise 12-12) Dr. Steve Rosenthal has his own medical practice. He specializes in the treatment of diabetics. His staff consists of a receptionist, two nurses, a lab technician, and a dietitian. As patients enter the outer office, they check in with the receptionist. The patient then waits until called by a nurse. When called, the patient moves from the waiting room to the inner offices. The patient must weigh in and is then assigned a room. The nurse assigning the patient to a room gathers all the personal data for updating the medical records, such as insulin dosage, medication, illnesses since last visit, etc. The nurse also takes an initial blood sample for blood sugar testing and performs a blood pressure test. The patient then waits until the doctor comes in. After the doctor's conference, the nurse returns to take more blood samples, depending on what is ordered by the doctor. The patient then waits until the dietitian comes to review eating habits and talk about how to improve meal planning and weight control. The patient returns to the receptionist to pay for the office visit and to schedule the next visit. In your response include the following: Identify the activities in the doctor's office that fall into process time, inspection time, move time, wait time, and storage time. List the activities in the doctor's office that are candidates for non value-added activities. Explain why you classify them as non value-added activities. Week 6 discussion 2 Carefully review the Discussion Forum Grading Rubric for the criteria that will be used to evaluate this Discussion Thread. Exercise 12-12) Dr. Steve Rosenthal has his own medical practice. He specializes in the treatment of diabetics. His staff consists of a receptionist, two nurses, a lab technician, and a dietitian. As patients enter the outer office, they check in with the receptionist. The patient then waits until called by a nurse. When called, the patient moves from the waiting room to the inner offices. The patient must weigh in and is then assigned a room. The nurse assigning the patient to a room gathers all the personal data for updating the medical records, such as insulin dosage, medication, illnesses since last visit, etc. The nurse also takes an initial blood sample for blood sugar testing and performs a blood pressure test. The patient then waits until the doctor comes in. After the doctor's conference, the nurse returns to take more blood samples, depending on what is ordered by the doctor. The patient then waits until the dietitian comes to review eating habits and talk about how to improve meal planning and weight control. The patient returns to the receptionist to pay for the office visit and to schedule the next visit. In your response include the following: Identify the activities in the doctor's office that fall into process time, inspection time, move time, wait time, and storage time. List the activities in the doctor's office that are candidates for non value-added activities. Explain why you classify them as non value-added activities.

Explanation / Answer

Absorption Costing is a better way of costing in spite of variable costing. There are several advantages of using absorption costing in preparation of financial statements. One of the biggest advantage of it that it is GAAP compliant and required for reporting to the Internal Revenue Service. If a company chooses variable costing as a accounting method for its managerial pupose then also they have to use the absorption costing method for Internal Revenue Service. And also absorption costing gives a proper picture about the cost per unit for the product which facilitates the management in taking the correct decision. And they get correct profitability of the product. Absorption Costing provide a true and fair picture of the entity relating to cost, profitability, expense, etc. Absorption Costing conforms the matching and accrual accounting concepts which requires matching costs with revenue for a particular period. In absorption costing, we can avoid the seperation of fixed cost and variable cost which cannot be easily and accurately done. The presentation of under absorption and over absorption of factory overhead disclose the inefficient utilisation of resources of production of the entity. The apportionment of various fixed factory overheads to cost centres or departments makes managers more reponsible for the cost incurred in the departments.

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