using spare 'capacity in respect of which the following information is given: Materials Requirements In Stock Book Replacement Realisable Value Cost per kg. value per kg. 500 kg 250 kg Material A (in for production) 73 use 1,250 Material B (not 1,500 kg 700 kg 73 71.50 currently in 1,400 use) Fixed overhead is absorbed of 7 10 per unit. In the given decision context; identify the following : SI. No. Item Value (?) II (1) Relevant cost of 500 kg of A (ii) Relevant cost of 1,500 kg of B (ii) Relevant fixed overheads (iv) Opportunity cost of 800 kg of B not in stock (v) Relevant cost of 20 kg of A damaged in stock
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.
Step by step
Solved in 2 steps
