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根据全面成本核算,Lendal利润最高和Ouse是排名第二,而克利夫顿是最后一个。至于总直接成本,Ouse使用的是最直接材料和直接人工成本，而其中克利夫顿使用最少的。因此,公司经理人似乎把更多的钱用秋生产Lendal和Ouse以获得更多利润，而克利夫顿量应该相应减少。然而,结果是完全不同的,当我们计算基于活动的成本核算。Ouse是最有利可图的和Lendal排名第二,而克利夫顿的利润是负的,这也许是不合理的。所以管理者应该制定克利夫顿的销售价格。不同的成本核算方法有不同的结果。全面成本核算可以帮助管理者制定长期目标对产品数量,但是这不能解释为什么克利夫顿赚不到利润率。基于活动的成本核算提供了详细的信息是关于利润的计算,但它不容易操作。究竟这三种产品哪种是最好的，还需要更多的调查。

Currently , York Ltd makes three products, the Ouse, Lendal and Clifton. The company uses traditional (full) costing, absorbing overheads on the basis of direct labor hours to calculate the product costs while Activity Based Costing are introduced to compare the difference and similarity between them.

According to the Full Costing , Lendal has the most profit and Ouse is ranked second while Clifton is the last. As for total direct costs, Ouse uses the most direct materials and direct labor and Clifton uses the least. Therefore , the manager seems to put more money to produce Lendal and Ouse gain more profit while Clifton quantity should be diminished.However, the result is quite different when we calculate by Activity Based Costing. Ouse is most lucrative and Lendal is ranked second while the profit of Clifton is negative,which maybe is not reasonable. So managers should formulate the selling price of Clifton. Different costing methods have different outcomes.Full Costing helps managers set the long-term goal about product quantity but it can not explain the reason why Clifton earns less than others. Activity Based Costing provides detailed information about profits but it is not easy to operate. So which one is better. It needs more investigation as follows.

“Full costing is not relevant for decision making and activity based costing provides better management information” is a statement incited in a conference about Activity Based Costing. It is not reasonable to judge Full costing and Activity Based Costing blindly on the grounds that both are manipulated in accordance with time , processing characteristics and so on . As the traditional approach to calculate product costs, Full costing has been proved comprehensive management Accounting and beneficial long-term accounting strategy in that it includes both variable and fixed manufacturing overhead, direct material and direct labor(Prof. Zahirul Hoque, 2005). It assists companies with price formulas establishment . For instance, cost-plus pricing , which is based on the absorption cost , that is , a method to formulate price with product unit cost taken into consideration along with a percentage of profits. So companies can forecast the price tendency, determine its own profit scale and simultaneously dodges the market risk. Then from the long-run perspective , Full Costing is sensible because it shores up sustainable pricing policy and profit maximization.What’s more , in accordance with the Full Costing, the more production volume is , the lower fixed costs per unit is. At the same time the unit product cost is reduced ,excess profits achieved and product competitiveness improved.

However, it is difficult to apply Full costing to specific product in short- term. Just like York Ltd.,Clifton earns 67500 when it is Full Costing 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。