The service company. Excellent Maids, cleans hotel rooms at resorts on Hilton Head Island. Excellent has identified three activities involved in cleaning. Information on those activities for the month of May follow: Estimated Overhead Cost Cost Pools Cost Drivers Expected Use of Cost Drivers Cleaning bed linens Number of beds $72,000 48,000 beds Cleaning bathrooms Number of bathrooms 64,000 32,000 bathrooms Other cleaning Number of hotel rooms and public spaces 45,000 18.000 spaces
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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