If Georgiana estimates 1400 customers next month, what is the estimated cost for nail supplies? Georgiana operates a nail salon. She is trying to plan her costs for the next month and is uncertain of how to estimate those costs. Help her estimate next month’s costs given the following information she collected, based on number of customers per month. Number of Customers 1300 1800 1500 1200 Nail supplies $4030 $5580 $4650 $3720 Equipment Rental 2200 2200 2200 2200 Electricity 274 364 310 256 Total $6504 $8144 $7160 $6176
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 Georgiana estimates 1400 customers next month, what is the estimated cost for nail supplies?
Georgiana operates a nail salon. She is trying to plan her costs for the next month and is uncertain of how to estimate those costs. Help her estimate next month’s costs given the following information she collected, based on number of customers per month.
|
Number of Customers
|
|||||||
|---|---|---|---|---|---|---|---|
|
1300
|
1800
|
1500
|
1200
|
||||
|
Nail supplies
|
$4030 | $5580 | $4650 | $3720 | |||
|
Equipment Rental
|
2200 | 2200 | 2200 | 2200 | |||
|
Electricity
|
274 | 364 | 310 | 256 | |||
|
Total
|
$6504 | $8144 | $7160 | $6176 |
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