Raw materials and components 2,950,000 yen Insurance, plant . 600,000 Electricity, machinery. 120,000 Electricity, light 60,000 Engineering design 610,000 Depreciation, plant 700,000 Depreciation, machinery 1,400,000 Custodial wages, plant . 40,000 Equipment maintenance, wages 150,000 Equipment maintenance, parts . 30,000 Setup wages 40,000 Inspection of finished goods 30,000 Property taxes 120,000 Natural gas, heating 30,000
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.
Refer to the information given. For each of the activity cost pools identified,
indicate whether it represents a unit-level, batch-level, product-sustaining-level, or facility-level activity.
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