IntroductionThe Australian food and drink industry is forecasting significant growth, with the majority of food and drink executives expecting revenue increases (84% of executives) (Thornton, 2013). For the purposes of this report, the focus will be on the product costing systems in place at Voodoo Ltd, focusing on their applicability and effectiveness. Our objective is to identify weaknesses in Voodoo Ltd's current operations that could impede its growth in what is a dynamic and fast-paced industry. Voodoo Ltd is currently locked in a battle to maintain its momentum as a leading food and drink company as it faces stiff competition from rivals that outpace them in terms of production rates and undercut shelf space prices. An analysis of current measures and cost information will enable Voodoo Ltd to re-evaluate its current operations and implement new initiatives to address increasing competition to ensure it maintains its velocity moving forward. Key Recommendations After analyzing Voodoo Ltd's current cost and production process, we have carefully formulated our recommendations which we believe would greatly help Voodoo Ltd to remain competitive and deliver exponential growth in the coming financial years. Below is an outline of our recommendations which will be further discussed later in the report: • Voodoo Ltd must take R&D costs into consideration when designing the product costing system. This is to avoid unwanted failures in its sales and marketing departments. • Senior management should try to streamline delivery and transportation at all three manufacturing plants. • Voodoo Ltd should look to appoint an innovation manager to ensure its three manufacturing facilities can be one. ..... middle of paper ....... Review. 3(2). 195-218.6. Jiao, J., & Tseng, M. M. (1999). A pragmatic approach to product costing based on standard time estimation. International Journal of Operations and Production Management, 19(7), 738-755. doi: 10.1108/014435799102716927. Langfield-Smith, K., Thorne, H., & Hilton, R. (2012). Management accounting (6th ed.). Australia: McGraw-Hill Australia Pty Ltd.8. Lere, J. C. (2001). Your Product Costing System Appears to be Broken: Now What? Industrial Marketing Management, 30(7), 587-598. Retrieved from http://www.sciencedirect.com.ezproxy.lib.monash.edu.au9. Smith, K. L., Thorne, H., & Hilton, R. (2012). Management accounting (6th ed.). North Ryde, NSW: The McGraw Hill Australia Pty Ltd.10. Turner, M. J., & Hilton, R. W. (1989). Using product costing accounting systems in production decisions. Journal of Accounting Research. 27(2). 297-312.