Cost items Flour Depreciation on cooking vats Cooking oil Sugar Wages of a donut cook Repair of a cooking vat Packaging for donuts Cartons for shipping donuts Accountant's salary Production namager's salary Advertising Oil for the factory conveyor system Fuel for the delivery truck used to ship donuts to customers Direct Direct material labour ring Manufactu- overheads Selling and administrative expenses Oth- er Cost items Tyres manufactured by Bridgestone Sales commissions paid to the sales team of Dell computere Wood gluc consumed in the manufacture of IK A furniture Hourly wages of security guards employed at an Exxon Mobil fuel refinery Salary of the financial controller of HP Advertising costs of Coca-Cola Straight-line depreciation on factory machinery of Levi Strauss Jeans Wages assembly line workers manufacturing Whirlpool washing machine Delivery costs on customer shiments of Peter Ice Cream Newsprint consumed in printing the Australian Plant insurance costs of Sanitarium IIcalth Food Company Glass costs incurred in manufacturing Philips light bulbs Period Product Variable Fixed Manufacturing cost cost cost cost cost
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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