1.CEC Corporation distributes paper cups. CEC owns some shipping equipment whose costs are sometimes lumped in with Shipping Expense. Below is a comparative income statement listing the last three months activity. CEC Corportion Comparative Income Statement Three Months Ending March 31, 2019. March Jaлиary 6,000 S690,000 $414,000 $276,000 February 8,000 $920,000 $552,000 $368,000 Sales in Units 10,000 $1,150,000 $690,000 $460,000 Sales Revenue Cost of Goods Sold(100% Varible) Gross Margin Selling & Administrative Expenses: Shipping Expense Advertising Expense Salaries & Commission Expense $42,000 $65,000 S125,000 $12,000 $49,000 $34,000 $65,000 $110,000 $12,000 $5,000 S65,000 $135,000 S12,000 S5,000 Insurance Expense Depreciation Expense Total Selling & Administrative Expense Net Operating Income S5,000 S226,000 S50,000 S249,000 S266,000 S119,000 $194,000
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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