Accounting techniques used by Reebok International


Select any manufacturing company of your choice that produces any products. Describe and compare the marginal and absorption costing systems used in the selected company.

1) Importance of product cost information.
2) Production costs and their classification.
3) Description and explanation of the features of marginal costing and absorption costing.
4) Computation of product cost and preparation of financial performance statement using marginal costing and absorption costing.
5) Summary.


The question here belongs to Accounting and it is about marginal costing and absorption costing. An example of Reebok has been given in the solution. Reebok International has been one of the premium sportswear manufacturers which is best known for its sports shoes and sneakers worldwide. Reebok uses marginal costing to assess its stock and this process has been explained in the solution.

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