The net income under variable costing would be: * a. P64,000 b. P60,000 c. P56,000 d. P52,000 The net income under absorption costing would be: * a. The same as the income under variable costing. b. P8,000 greater than the income under variable costing. c. P12,000 greater than the income under variable costing. d. P8,000 less than the income under variable costing.
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.
The net income under variable costing would be: *
a. P64,000
b. P60,000
c. P56,000
d. P52,000
The net income under absorption costing would be: *
a. The same as the income under variable costing.
b. P8,000 greater than the income under variable costing.
c. P12,000 greater than the income under variable costing.
d. P8,000 less than the income under variable costing.
![For the next 3 items. Andrew
Company manufactures a
single product. The following
data pertain to the company's
operations last year: (refer to
image) At the beginning of the
year there was no units in
inventory. A total of 12,000
units were produced during the
year, and 10,000 units were
sold. Under variable costing,
the unit product cost is: *
Selling price per unit
Variable costs per unit
P24
Production
P8
Selling and administrative
P2
Fixed costs in total:
Production
P48,000
Selling and administrative
P36,000
a. P8.00
O b. P10.00
c. P12.00
O d. P14.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52c24589-b008-486e-8024-a72804ece941%2F8f9d91fb-9428-48c6-97a7-0f0a6918c759%2Fu2q1d68_processed.jpeg&w=3840&q=75)
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