What is the preferred costing method for a plastic injection molding manufacturing company?
The company manufactures plastic products to customer orders; most of the time the specifications of products ordered by each customer are relatively fixed; the products are identical (e.g. plastic containers) and manufactured by batch. I was asked to help set up the costing system for the company. I know it has to be process costing, but then which sub-type - FIFO, Weighted Average or Standard Costing? I am inclined to FIFO or Weighted Average, but not 100% certain. Would appreciate if you could share with me your thoughts. Thanks a lot. Jenny