Anna Garden recently opened her own basketweaving studio. She s finished baskets in addition to selling the raw materials needed by customers to weave baskets of their own Unfortunately, owing to sp limitationsAnna is unable to carry all varieties of kits originally assem and must choose between two basic packages The Basic Kit include undyed, uncut reeds (with dye included) for weaving one basket. Th package costs Anna $18 and sells for $32. The second kitcalled Stage 2includes cut reeds that have already been dyed With this kit the cus need only soak the reeds and weave the basket. Anna produces the 2 kit by using the materials included in the Basic KitBecause she is m efficient at cutting and dying reeds than her average customer Anna able to produce two Stage 2 kits in one hour from one Basic Kit (She her time at $28 per hourThe Stage 2 kit sells for 41
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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