Fashionista Toys makes three versions of the tiny 'Oh My Gosh You' dolls. The first version requires 10 minutes each for manufacturing and packaging and 2 pounds of plastic, the second version requires 12 minutes of manufacturing and packaging and 3 pounds of plastic and the third version entails 15 minutes for fabrication and packaging and 4 pounds of plastic. There are 8 hours of manufacturing and packaging available and 200 pounds of plastic available for the next production cycle. The unit profits are $1 for each Version 1, $5 for each Version 2 and $6 for each Version 3. A minimum of 10 units of each must be made to fill previous orders. Formulate a linear programming model that will determine the optimal production quantities for profit maximization.
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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