Manny Co. reported the following per unit cost for the period just ended: Direct materials P20 Direct labor P24 Variable overhead P2 Fixed overhead P14 Variable selling & administrative P4 Fixed selling & administrative P6 If the company were using the absorption approach or cost-plus pricing, and adds a 50% markup to price its product, the selling price per unit would be Group of answer choices
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.
Manny Co. reported the following per unit cost for the period just ended:
Direct materials P20
Direct labor P24
Variable
Fixed overhead P14
Variable selling & administrative P4
Fixed selling & administrative P6
If the company were using the absorption approach or cost-plus pricing, and adds a 50% markup to price its product, the selling price per unit would be
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