akers nas col owing regarding its production process. Cost information gathered from March is presented in the table below. Cost incurred Plant supervisor salary Lumber Cost behavior FC VC Assembly worker wages Lease on factory March cost $12,000 per month $75,000 $16 per hour FC $15,000 per month In March, the company produced 1,000 units and used 2,000 hours of production labor. Requirement 1: Fill in the blank column with the appropriate cost behavior for the item listed. Requirement 2: In April, the company anticipates it will produce 1,500 units. Given this informati 184600 VC
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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