A summary of the usage of the service department services by other servic departments as well as by the two producing departments is as follows: Equipment Production Dept. Dept.1 Dept.2 40% Building Service Cost Center Supervision Maintenance Occupancy Supervision Equipment maint. Building occunpany 10% 10% 5% 45% 45% 55% 10% 35% 45% Direct costs in the various departments are as follows: Direct Cost P 35,000 30,000 90,000 350,000 450,000 Label si S2 Department Supervision Equipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervisic departinent's eost would be ailocated to the building occupancy departmen (Start with Building occupancy, then Supervision) S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250
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.
Step by step
Solved in 2 steps
