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.
![A company is going to buy a new machine for manufacturing its product. Four different machines are available.
A
B
D
First cost
Php 24,000 Php 30,000
Php 49,600
Php 52,000
Power per year
Php 1,300
Php 1,360
Php 2,400
Php 2,020
Labor per year
Php 11,600 Php 9,320
Php 4,200
Php 2,000
Maintenance per year Php 2,800 Php 1,900
Php 1,300
Php 700
Taxes and insurance
3%
3%
3%
3%
Life, years
5
5
Money is worth 17% before taxes to the company.
Using annual cost method, what is the total annual cost of machine C?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F30b8840e-a34b-41f5-9403-a35bcdfea225%2F3004fa7b-d0f4-4202-9e3c-1ecd9ed1725c%2F2ugvtl9_processed.png&w=3840&q=75)
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