Absovar Company has provided the product Alpha for Period 1. that the actual and budgeted production overheads are the same. S the statement of profit and loss using the variable costing system. lowing ion regardin 250,000 Units produced 200,000 Units sold (RM40 per unit) 250,000 Budgeted units Variable cost per unit: Direct materials RM 10 Direct labour 7 Variable production overheads Variable selling and administrative overheads 3. Fixed cost: Fixed production overheads Fixed selling and administrative overheads RM375,000 RM150,000 There were no opening stocks at the start of the period. It is aiso cho
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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