List and explain four purposes of product costing.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 3, Problem 1RQ

List and explain four purposes of product costing.

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What markup percentage is the company using

An asset owned by Crescent Manufacturing has a book value of $36,000 on June 30, Year 5. The asset has been depreciated at an annual rate of $8,000 using the straight-line method. Assuming the asset is sold on June 30, Year 5 for $39,500, how should the company record the transaction? a. Neither a gain nor a loss is recognized on this type of transaction. b. A gain on sale of $3,500. c. A gain on sale of $5,000. d. A loss on sale of $3,500. e. A loss on sale of $5,000.

Can you solve this financial accounting question with the appropriate financial analysis techniques?

Answer 2

Textbook Question

Chapter 3, Problem 1RQ

List and explain four purposes of product costing.

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 3, Problem 1RQ

List and explain four purposes of product costing.

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 3, Problem 1RQ

List and explain four purposes of product costing.

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Answer 8

Expert Solution & Answer

To determine

Enlist and explain the four purposes of the product costing.

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Enlist and explain the four purposes of the product costing.

Answer 12

Explanation of Solution

Product costing: The process of assigning the production costs to all output of the organization is referred to as the product costing.

Product costs: Product costs are the costs which are incurred in the production of the goods. These costs include the direct materials, direct labor, and manufacturing overhead cost.

Four purpose of the product costing.

Use in financial accounting: The product cost are required to calculate the value of the inventory on the balance sheet and to calculate the cost of goods sold expense on the income statement.
Use in managerial accounting: The product costs are required in managerial accounting to make the better planning, for controlling the cost of the product and to make the better decisions.
Use in cost management: The products costs are required in the cost management to have a control or to reduce the cost of the manufacturing products or services and to give the clarity of the particular cost.
Use in reporting to interested organizations: The product costs information are used to report the relationship that exits between the firms and the other outside organizations.

Answer 13

Ch. 3 - List and explain four purposes of product costing.Ch. 3 - Explain the difference between job-order and...Ch. 3 - How is the concept of product costing applied in...Ch. 3 - What are the purposes of the following documents:...Ch. 3 - Why is manufacturing overhead applied to products...Ch. 3 - Explain the benefits of using a predetermined...Ch. 3 - Describe one advantage and one disadvantage of...Ch. 3 - Describe an important cost-benefit issue involving...Ch. 3 - Explain the difference between actual and normal...Ch. 3 - When a single, volume-based cost driver (or...

List and explain four purposes of product costing.

Concept explainers

Videos

Explanation of Solution

Want to see more full solutions like this?

Chapter 3 Solutions

Additional Business Textbook Solutions