1. XYZ has the following cost components for 100,000 units of product for the year: P 200,000 Raw Materials Direct Labor 100,000 Variable Manufacturing overhead 100,000 Fixed Manufacturing overhead 100,000 Variable Selling/administrative expenses 50,000 Fixed Selling/ administrative expenses 100,000 Total Costs 650,000 If XYZ produced and sold 110,000 units, how much would be its total costs? (Hint: compute for the unit cost) 1. P 650,000 2. P 715,000 3. P 695,000 4. P 540,000 O 1 O 2 O 3 4.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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