Classify the different costs as unit, batch, product, or facility. Answers (unit, batch, product, or facility) may be used more than once and some answers may not be used at all. Research and development Electricity Building security costs Quality control Design costs
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.
Classify the different costs as unit, batch, product, or facility. Answers (unit, batch, product, or facility) may be used more than once and some answers may not be used at all.
Research and development
Electricity
Building security costs
Quality control
Design costs
The cost which is incurred whenever a product is produced and service is performed refer to the unit level costs.
The cost which is incurred whenever a series of steps is performed refers to the batch level costs.
The cost which is incurred to support the entire product line refers to the product level costs.
The cost which is incurred to ensure the smooth flow of production refers to the facility support costs.
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