SixthZ incurred the following costs during 2018: Variable costs treehouse Manufacturing: Direct Materials $500 Direct Labor $270 VMO $40 Variable Selling & Admin $75 Fixed costs per year Fixed Manufacturing Overhead $125,000 Fixed Selling & Admin $60,000 During the year, SixthZ produced 1,100 treehouses and sold 950 treehouses. The selling price of each set was $1,000. Assuming SixthZ uses variable costing, what is the unit product cost? $941.58 O $885 O $923.64 O $810
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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