IMPLICATIONS OF COST TRACING ON PRODUCTS Name Professor Institute Course Date Cost tracing can be defined as the process in which the cost is matched directly with the product being produced. A traceable cost is a cost for which there is a direct cost object cause-and-effect relationship with a process or geographical area .Cost objects can be identified and measured by use of cost accounting systems. This includes anything assigned to costs. Tracing costs appropriately assists firms in ensuring that of concern is the method or the means to be used in cost tracing. Several methodologies should be put in place to trace every element of cost in order to eliminate assumptions and enhance reliability. This therefore contributes to this other major issue of accuracy and timeliness embraced in the organization. Costs should be traced directly to the products they are associated with to enhance accuracy and cost allocation can be done anytime estimation is made on costs. Reference https://www.researchgate.net/profile/Srikant_Datar/publication/30530168_Managemen [...]
Please answer the following accounting questions in APA format. Please use credible online sources and include the link in which you've retrieved your information on the reference page. These sources must be from accounting firms, universities here in the U.S., Forbes.com or Businessweekly.com. Please use in-text citations. How important is it to trace costs appropriately? Please explain. As you are beginning to think about the importance of tracing costs appropriately, please consider the differences between variable costing and absorption costing. What implications does each of these have on such things as financial reporting of profit and pricing your products for the marketplace? You may also want to think about the issues involved with traceable costs that you may find online. This must be in 350 words.