Target Company Assignment: Popular Methods of Production

Target Company
Student’s Name
Institutional Affiliation
Target Company
Question 1
Target Company can adopt popular methods of production to produce the right and quality shoes. Therefore company may use the three primary methods of production namely, batch production, flow production and, job production method
Batch production method is applicable as it involves making products in distinct separate groups. Particularly, this allows the shoes in every batch to pass through the all individual stages of production. Another reason that make this method applicable to Target Company is that the products are identical, which allow specialization and customization of this products. Also, the method allows the company to employ division of labor technique, thus enabling the company to enjoy economies of scale.
The accounting system applicable to batch production method is batch costing, a system that entails identifying and assigning of cost associated with production of 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. 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 a specific batch number to ensure that actual cost of material used is charged to the correct batch.
Another method the company may use is flow production method. The method can be useful in the later stages of shoe production as it applicable at the finishing stage where shoes are moved from one stage to another as soon as they are completed as they do not require other additional products. 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 this approach beneficial to Target Company is that the methods incurs lower level costs of production and quantity and quality of products tend to be more consistent than other methods of production.
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. Process costing is applicable to this method because the shoes are passed into different stages before they are converted into finished shoes. Since the units in a flowing production are of similar products, the cost incurred on individual unit cannot be differentiated since the technique assumes that the cost associated with each batch are the same. Under this concept, the cost of production are carried forward over a period of time before they are summarized and allocated to other units produced.
The last production method that Target Company can employ in its production process is job production method. Job production method refers to a technique that is applicable when a company is specialized in manufacturing a single type of products. This approach ensures batch of the products are completed before the next one is started. However, the approach is perceived as highly costly as it tends to incur high unit cost due to its tim...