Target Company: Series of Production Process Assignment

Company Analysis Student’s Name
Institutional Affiliation
Company Analysis
Question 1
Target Company is a manufacturing company that makes shoes, and this prompt it to carry out a series of production process to produce finished products. The production process is set in stage by stage form as it entails steps such as shoe designing, design review, fabric cutting, as well as shoe specification. For these reason, Target Company can adopt popular methods of production to produce the right and quality shoes. Thus the company may use the three primary methods of production namely, batch production, job production and flow production method (Maher, Stickney, & Weil, 2012)
Batch production method is applicable as it involves making products in distinct separate groups. Particularly, this allows the shoes to in every batch to pass through the all individual production stages of production stages (Maher, Stickney, & Weil, 2012). Another reason that make this method applicable to Target Company is that the shoes are produce are identical as this can also allow specialization and customization of this products. Since this method allows the company to use division of labor, this also enables the company to enjoy economies of scale (Duchac, Warren, & Reeve, 2011).
The accounting system applicable to batch production method is batch costing, a system that entails the identifying and assigning of cost associated with production a set amount of products. The system is applicable because, under batch processing, each set of products are of identical units but the nature of the batch can be different, which is insignificant (Duchac, Warren, & Reeve, 2011). Another factor is that the cost incurred at each batch can be identified against each batch number, for instance, the requisite shoe material can be coded to match to a specific batch number to ensure a correct batch is charged to the actual cost of material used (Duchac, Warren, & Reeve, 2011).
Another method the company may use is flow production. The method can be useful in the later stages of shoe production as it applicable when shoes at finishing stage moves from one stage to another as soon as they do not require other additional products (Maher, Stickney, & Weil, 2012). This approach will be suitable for Target Company as it is capable of facilitating the productions of large quantity of shoes within a short period, Another reason that makes thus approach beneficial to Target Company is that the methods incurs lower level costs of production and quantity and quality tend to be more consistent than other methods of production (Duchac, Warren, & Reeve, 2011).
The accounting system applicable to flow production method is the process costing method. Process costing methods is the continuous operations that is used in a case where products are similar (Duchac, Warren, & Reeve, 2011). This process is applicable to this method because the shoes are passed into different stages before they are converted into finished shoes. Since the units are there is a flowing production of similar products and the cost incurred with individual unit ...