Q1) The required engine to be product with high qulaity to be part of oilfied balatform. The production of (x engines) within the following costs details: Fixed Costs Variable Costs Rents 105,000.0 Direct Insurance 9,600.0 materials 28 General Salaries 64,400.0 Labors 11 Overtimes 9.9 Maintenance 21,000.0 Food costs 0.1 Revenue from selling prices per unit (59). product of (X Engine) 52 118 138 144 190 193 200 207 290 327 347 Required: A) Find all lines of Break Even. how the produaction reach to B.E.P. B) Plotting all details. C) If you suppose to use F.C to be 150,000 inseatd of the previous total fixed cost. Make the comparison between two obatining results (only) on Break.Even.Points. Give your opinon on both figuers.
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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