ABC Service company provides shuttle service between four hotels near a Hospital and an international airport. ABC uses two 10- passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is shown below. Fare revenues (1,440 fares/units) OMR 36,000 Variable costs Fuel OMR 5,040 Tolls and parking 3,100 Maintenance 860 9,000 Contribution margin 27,000 Fixed costs 12,700 Salaries 1,300 Depreciation 1,000 Insurance 15,000 OMR 12,000 Net income What is the break-even point in OMR/ dollars?
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.
![ABC Service company provides shuttle service between four hotels near a Hospital and an intermational airport. ABC uses two 10-
passenger vans to offer 12 round trips per day. A recent month's activity in the form of a cost-volume-profit income statement is
shown below.
Fare revenues (1,440 fares/units)
OMR 36,000
Variable costs
Fuel
OMR 5,040
Tolls and parking
3,100
Maintenance
860
9,000
Contribution margin
27,000
Fixed costs
Salaries
12,700
1,300
Depreciation
1,000
Insurance
15,000
OMR 12,000
Net income
What is the break-even point in OMR/ dollars?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5cbbcd59-4553-4ae7-a8f1-a2b1ed5d10ea%2F7e178f9e-40d6-4d86-9be9-688d5f94cf72%2Fefiqbx_processed.jpeg&w=3840&q=75)
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