At the beginning of October, Nelson Inc. detemined the following for a particular product: Standard Quantity of material per unit produced 10.0 lbs. Standard Price of material $ 2.00 per lb. Budgeted Units to be produced 6,000 units The following data pertain to operations concerning the product for October: Actual Cost of materials purchased Beginning Materials Inventory Ending Materials Inventory $ 150,000 1,500 lbs. 2,500 lbs. Actual Units Produced 8,000 units Materials Purchase Price Variance $ 15,000 Favorable 7 What was the Materials Quantity Variance for October? $3,000 Unfavorable А. $5,000 Unfavorable $15,000 Unfavorable В. C. D. $27,000 Favorable E. None of the above
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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