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Judgement in Measuring Costs Reflection

Judgement in Measuring Costs Reflection

Judgement in Measuring Costs Reflection

Prior to beginning work on this discussion, read Chapters 1, 2, and 3 in the textbook.

Write: Make sure your response addressing the following question is more than 200 words and include an in-text citation from the reading material where appropriate.

Much of cost accounting requires individuals to use their own judgment. Measuring costs is no exception. In your own words, explain why the use of judgment in cost measurement can lead to markedly different results even within the same firm. Would you not think that, at least within their own organization, management could establish some guidelines for ensuring that cost measurement is done primarily the same way by individuals within the organization? If so, how would that be accomplished? If not, why not? Use an example to illustrate your point.

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