Super Bakerys management Essay Example | Topics and Well Written Essays - 250 words

Super Bakerys management - Essay Example Job costing system is the most preferred by most medium-sized and small corporations, like the professional service such as legal and medical; advertising companies; shipbuilding; construction; manufacturing of furniture or custom equipment. The installation of the ABC system by the company was the best decision made, since with this system they were in a position of allocating overhead to several activity cost pool, consequently assigning activity cost pools to services and products by way of cost drivers (Drucker, 2006). The company decided to adopt this system since it wanted to be in a position of determining the costs of production as it was no longer involved in the direct production of its products. The job order costing would greatly fit into the structure of Super Bakery as its strategies can accommodate it very well. It would help the company in determining the costs that are associated with particular products (Drucker, 2006). This system will also enable the company to establish the production cost per unit without having to include the unrelated costs since it outsources its