Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Utilities Machine Hours Month January $8700 800 February 8360 720 March 8950 810 April 9360 920 Мay 9625 950 June 9150 900 1The variable utilities cost per machine hour is: a) $0.18. b) an amount other than those listed above. c) $4.50. d) $5.00. e) $5.50. 2. The fixed utilities cost per month is: a) an amount other than those listed above. b) $4,760. c) $3,764. d) $5,100. e) $4,400. 3. Using the high-low method, the utilities cost associated with 980 machine hours would be: a) an amount other than those listed above. b) $9,660. C) $9,700. d) $9,790. e) $9.510.
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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