Table shows information related to cost incurred to produce 500 units. (All values in OMR) Total Amount in OMR Direct Materials 6000 Insurance of factory building 1000 Salary of production manager 1500 Direct Labor 9000 Power 2500 Royalties 500 Rent of factory building 4000 Normal Spoilage 250 On the basis of above information, what will be the estimated cost to produce 2000 units? Select one
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.
![Table shows information related to cost incurred to produce 500 units. (All values in OMR)
Total Amount in OMR
Direct Materials
6000
Insurance of factory building
1000
Salary of production manager
1500
Direct Labor
9000
Power
2500
Royalties
Rent of factory building
500
4000
Normal Spoilage
250
On the basis of above information, what will be the estimated cost to produce 2000 units?
Select one:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5a6a103-af47-4759-a70b-49ce9b48fada%2Fc00ef9c6-66ed-4e0c-bd6b-b63e7ddeb4c0%2F218e59_processed.jpeg&w=3840&q=75)
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