Accounting Best Practices, Fifth Edition

Chapter 9: Costing Best Practices

9–1	Audit bills of material
9–2	Audit labor routings
9–3	Eliminate high-leverage overhead allocation bases
9–4	Assign overhead personnel to specific sub-plants
9–5	Use perfect standards for material variance reporting
9–6	Eliminate labor variance reporting
9–7	Follow a schedule of inventory obsolescence reviews
9–8	Eliminate the tracking of work-in-process inventory
9–9	Implement activity-based costing
9–10	Implement throughput accounting
9–11	Implement target costing
9–12	Track excess capacity
9–13	Limit access to unit of measure changes
9–14	Report on landed cost instead of supplier price
9–15	Review cost trends
9–16	Review material scrap levels
9–17	Revise traditional cost accounting reports