If fixed costs are $1,337,000, the unit selling price is $228, and the unit variable costs are $110, the amount of sales (units) required to realize an operating income of $233,000 is
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.
If fixed costs are $1,337,000, the unit selling price is $228, and the unit variable costs are $110, the amount of sales (units) required to realize an operating income of $233,000 is
Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at this point, there is no loss and no profit is possible.
Break even point (units) = Fixed costs / Contribution margin per unit
Contribution margin: Difference between the sales and the variable costs is called contribution margin.
Contribution margin per unit = Sales per unit - variable costs per unit
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