Cost classifications For each of the following costs, check the columns that most likely apply (both variable and fixed might apply for some costs).Product Costs Direct I ndirect Period Variable FixedRaw materialsStaples used to secure packedboxes of productPlant janitors’ wagesOrder processing clerks’ wagesAdvertising expensesProduction workers’ wagesProduction supervisors’ salariesSales force commissionsMaintenance supplies usedPresident’s salaryElectricity cost for offi ce buildingReal estate taxes forFactoryOffi ce building
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.
Cost classifications For each of the following costs, check the columns that most likely apply (both variable and fixed might apply for some costs).
Product Costs Direct I ndirect Period Variable Fixed
Raw materials
Staples used to secure packed
boxes of product
Plant janitors’ wages
Order processing clerks’ wages
Advertising expenses
Production workers’ wages
Production supervisors’ salaries
Sales force commissions
Maintenance supplies used
President’s salary
Electricity cost for offi ce building
Real estate taxes for
Factory
Offi ce building
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