Expanded use of electronic data processing. Innovative inventory systems. Many companies have changed to inventory systems that significantly lower inventory levels and costs. Focus on activities for overhead costs. In order to obtain more accurate product costs, many companies are accounting for overhead costs by the activities used in making the product.
Service industry needs.
Managers in service industries are under increasing pressure to determine the cost of their services and to establish prices that are competitive. Traditionally, the managerial accountant has been primarily engaged in cost accounting collecting and reporting manufacturing costs to management. The managerial accountant s responsibilities now extend to cost management providing managers with data on the efficient use of company resources in both manufacturing and service industries. Prepare a worksheet and closing entries for a manufacturing company.