For example when the government contracts with a

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Unformatted text preview: ry collections and, if so, over what time period), and a variety of similar matters. ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• As this example suggests, even the definition of what is to be included in a “full cost” calculation requires a managerial decision. Indeed, because there is such a wide range of choices embedded in an organization’s cost accounting system, managers frequently find it difficult to compare costs between their organization and other similar organizations where the cost accounting choices may have been made differently. ISSUES TO CONSIDER IN CALCULATING FULL COSTS If senior management does not wish to undertake pricing, profitability...
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