he volume of raw materials required for a certain machine part is 2.02 cm³. The finished volume is 1.05cm³. The time for machining each pieces is 45 seconds for steel & 30 seconds for brass. The costs of steel P32.50 /kg & the value for steel scrap is negligible. The cost of the brass is P60.00/kg & the value of brass scrap is P25.00/kg. The wage of the worker is P40/hr & the overhead cost of the machine is P50.00/hr. The weight of steel &d brass are 0.0081 kg & 0.0088 kg per cm3 respectively. Which material will you recommend?
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.
The volume of raw materials required for a certain machine part is 2.02 cm³. The finished volume is 1.05cm³. The time for machining each pieces is 45 seconds for steel & 30 seconds for brass. The costs of steel P32.50 /kg & the value for steel scrap is negligible. The cost of the brass is P60.00/kg & the value of brass scrap is P25.00/kg. The wage of the worker is P40/hr & the
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