The Speed Aircrat Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Simal Plane Department. The following data apply to the coming budgel year Budgeted costs of operating the materials laboratory for 100.000 to 200,000 technician hours per year Fixed costs per year Variable costs Budgeted long-nun usage in hours per year Large Plane Department Small Plane Department $8,800,000 $73 per technician hour 80.000 technician hours 120.000 technician hours
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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