A machine company located in Paris Industrial Area produces axial fan blades each of which has 7 welds on it. When a fan blade is completed, each weld is checked by a supervisor. If more than one weld is defective on a single fan blade, the person who made that fan blade is reported to the superintendent. Seçkin Piyade is one of the experts who is in charge of the production of fan blades. a) If 11% of all welds made by Seçkin Piyade are defective, what percentage of all fan blades made by him will have more than one defective weld? b) Over a long period of time how many times will Seçkin Piyade be reported to the superintendent for each 19 axial fan blades he makes?
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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