The overhead absorption rate used to allocate manufacturing overhead is calculated by: Select one: a. dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver b. dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs c. dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base d. dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver The predetermined manufacturing overhead rate is usually computed: Select one: A. At the end of the financial year B. At the beginning of the financial year C. During the financial year D. When overheads have been incurred
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.
The overhead absorption rate used to allocate manufacturing overhead is calculated by:
dividing the total actual
dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs
dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base
dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver
The predetermined manufacturing overhead rate is usually computed:
At the end of the financial year
At the beginning of the financial year
During the financial year
When
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