A company uses a standard costing system and is analyzing its costs for the most recent period. With respect to materials, the company uses the following standards: Standard Quantity of material allowed per unit Standard Price of material Budgeted units to be produced Beginning Raw Materials Inventory Ending Raw Materials Inventory Actual materials purchased 7lbs. $18 per lb. 550 units Olbs. 400 lbs. 6,100 lbs. Actual cost of materials purchased Actual units produced Q. Based on this information, the materials quantity variance would be: $145,010 680 units
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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