Assume a company makes only three products, A, B, and C. Product A Product B Product C 700 600 800 $ 80 $ 65 $45 $ 35 $ 20 2.5 1.25 The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Multiple Choice O $52,800 $59,800 $55.800 $57,800 $26 3.0
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.
![Assume a company makes only three products, A, B, and C.
Product A Product B Product C
Estimated customer demand in units
Selling price per unit
800
700
$ 80
$ 45
Variable cost per unit
$ 35
$ 20
Machine-hours per unit
2.5
1.25
The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?
Multiple Choice
O
O
$52.800
$59,800
$55,000
$57,800
600
$ 65
$ 26
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