S 2,85 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead 8.15 7.25 9.00 Unit product cost S27.25 Assume that direct labor is a variable cost The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product A90 that would increase the variable costs by $3.90 per unit and that would require an investment of $28,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capecity for producing the special order. The annual financial advantage (disadvantage) for the company as a result of accepting this special order should be: Mulsple Choice ($48,440) S1960 $1400 S85.960 O O o o
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
