RMPQMZ955 Corporation's capacity is 1,000 units. The results for the first year of RMPQMZ955 operations are based on 1,000 units of a single product made and sold and can be found below: Direct materials used, variable $4,000 Administrative office salaries, fixed $10,000 (ID#49347) Factory supervision, fixed $4,000 Sales commissions, variable ?? Depreciation, factory building, fixed $11,000 Depreciation, administrative office equipment, fixed $500 Indirect materials, factory, variable $2,000 Direct labor, variable $8,000 Advertising, fixed ?? Insurance, factory, fixed $1,500 Administrative office supplies (billing), variable $1,000 Property taxes, factory, fixed $2,000 Utilities, factory, fixed $5,930 Sales $150,000 Net Operating Income $89,000 Contribution Margin $130,000 Q.) What was RMPQMZ955's advertising cost for the year? A.) $
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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