The cost of a lubricant used for automated machining operations tends to rary with the speed of machine operations, and the machine is converted into units of product manufactured each hour. Management hopes to be able to estab- ish the fixed portion and the variable portion of the cost. A record of the costs or various units of produce manufactured is given below: Units Produced Costs 2020 March P5,800 1,200 1,000 April May 5,900 5,500 800 6,600 5,900 6,000 June 1,600 July August September 1,000 1,200 5,400 5,000 800 October 500 November 1,200 5,900 December 800 5,500
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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