Below is a printing house; production method, cost calculation time and cost preferences according to the scope of calculation are included. According to Production Type: The number of pages, size and quality of the books printed by the printing house are different. In other words, the products produced are different from each other in terms of quality. According to the Calculation Time of Costs: Top management wants the costs to be recorded after they are realized. According to the Scope of Calculation of Costs: The enterprise wants to include only the variable part of the general production expenses in the production costs. In the light of this information, what methods does the cost system of the enterprise consist of? a) Order Cost + Estimated Cost + Prime Cost B) Phase Cost + Standard Cost + Full Cost NS) Phase Cost + Actual Cost + Prime Cost D) Order Cost + Actual Cost + Variable Cost TO) Phase Cost + Standard Cost + Variable Cost
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Below is a printing house; production method, cost calculation time and cost preferences according to the scope of calculation are included. According to Production Type: The number of pages, size and quality of the books printed by the printing house are different. In other words, the products produced are different from each other in terms of quality. According to the Calculation Time of Costs: Top management wants the costs to be recorded after they are realized. According to the Scope of Calculation of Costs: The enterprise wants to include only the variable part of the general production expenses in the production costs. In the light of this information, what methods does the cost system of the enterprise consist of?
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According to Production Type: The number of pages, size and quality of the books printed by the printing house are different. In other words, the products produced are different from each other in terms of quality. this is known as phase costing
According to the Calculation Time of Costs: Top management wants the costs to be recorded after they are realized. this is known as Actual costing
According to the Scope of Calculation of Costs: The enterprise wants to include only the variable part of the general production expenses in the production costs.this is known as Prime Cost
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