A Itd. provides the following information about 2 products A and B A В Fixed overheads Rs. 400,000 pa Direct material pu Direct labour pu Variable o/h 280 310 120 160 80% of direct 75% of direct labour labor Selling price pu 750 850 Present a statement showing the marginal cost of each product and recommend which of the following sales mix should be adopted: a. 1000 units of A and 700 of B b. 2000 units of A c. 1200 units of A and 400 of B
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 with 2 images
