IntroductionThe Australian food and beverage industry expects significant growth, with a majority of food and beverage executives expecting to an increase in their income (84% of managers) (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 hinder its growth in what is a dynamic and rapidly changing industry. Currently, Voodoo Ltd is struggling to maintain its momentum as a leading company in the food and beverage industry as it faces strong competition from rivals who are outperforming them in terms of production rates and space pricing lower storage. An analysis of current cost metrics and information will allow Voodoo Ltd to re-evaluate its current operation and implement new initiatives to combat growing competition to ensure it maintains its momentum in the future. Key RecommendationsHaving analyzed the current costing and production process of Voodoo Ltd, we have carefully formulated our recommendations which we believe would greatly help Voodoo Ltd to remain competitive and ensure exponential growth in the coming financial years. Below is an overview of our recommendations which will be discussed in more detail later in the report: • Voodoo Ltd must consider R&D. costs when designing a product costing system. This is to avoid unwanted failures in its sales and marketing services. • Senior management should seek to streamline delivery and transportation across the three production plants. • Voodoo Ltd should look to appoint a head of innovation to ensure its three production plants can be. ..... middle of paper ......ing Review. 3(2). 195-218.6. Jiao, J. and Tseng, M. M. (1999). A pragmatic approach to product pricing based on a standard time estimate. International Journal of Operations and Production Management, 19(7), 738-755. doi: 10.1108/014435799102716927. Langfield-Smith, K., Thorne, H. and Hilton, R. (2012). Management Accounting (6th ed.). Australia: McGraw-Hill Australia Pty Ltd.8. Léré, JC (2001). Your product costing system seems to be broken: what now? 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, New South Wales: The McGraw Hill Australia Pty Ltd.10. Turner, M. J. & Hilton, R. W. (1989). Using product costing accounting systems to make production decisions. Accounting Research Journal. 27(2). 297-312.