a single product and has the following cost structure: Fixed Costs Production Rebel Co. manufactures Variable cost per unit Production PS Selling and administrative 3 Selling and administrative During the year, 8,000 units were produced, and 7,800 units were sold. P32,000 16,000
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.
The carrying value of ending inventory under variable costing would be:
A. P1,400 higher than under absorption costing
B. P1,400 less than under absorption costing
C. P800 less than under absorption costing
D. the same as under absorption costing
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