Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as follows: Metro Suburban Outlying Service Revenue ₱ 90,000 ₱ 70,000 ₱ 35,000 Variable Expenses 15,000 10,000 5,000 Controllable Fixed Expenses 30,000 25,000 10,000 Fixed Expenses controllable by others 20,000 15,000 5,000
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.
Beau County Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended as follows:
|
Metro |
Suburban |
Outlying |
|
|
Service Revenue |
₱ 90,000 |
₱ 70,000 |
₱ 35,000 |
|
Variable Expenses |
15,000 |
10,000 |
5,000 |
|
Controllable Fixed Expenses |
30,000 |
25,000 |
10,000 |
|
Fixed Expenses controllable by others |
20,000 |
15,000 |
5,000 |
In addition to the expenses listed above, the company has ₱6,000 common fixed expenses. The income tax expense for the year is ₱21,000.
What is the segment margin associated with the Suburban Division? Show solution
Group of answer choices
₱ 20,000
₱ 35,000
₱ 15,000
₱ 25,000
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