Using the high-low method, the monthly operating costs if Pelicans sells 12,000 snow cones in a month are $1000 $13,000 $12,000 $20,000
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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Pelicans Ice is a snow cone stand near the local park. To plan for the future, it wants to determine its cost behavior patterns. It has the following information available about its operating costs and the number of snow cones served.
Using the high-low method, the monthly operating costs if Pelicans sells 12,000 snow cones in a month areMonth Number of snow cones Total operating costs January 6,400 $5,980 February 7,000 $6,400 March 4000 $5000 April 6,900 $6,330 May 8000 $9000 June 7,250 $6,575 $1000$13,000$12,000$20,000
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