Example (1): Fill in the blanks for each of the independent cases below: Variable Revenues the condition costs costs 800 500 300 2000 B 1000 700 1000 300 1500 Example (2): The South Company sent 410,000 units of its product at a price of 68 dinars, and the variable costs per unit of the product amounted to 60 dinars, and fixed costs were 1680,000 dinars. Required: Calculating the Contribution Margin Ratio 40% 200 operating income 1200 200 total costs نینوی fixed contribution margin and operating income of the company
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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