(b) (d) (c) (h) (e) (g (i)
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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Cost Classification
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Match each cost to the appropriate cost behavior pattern shown in graphs (a) through (l). Any graph can fit two or more patterns.
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The cost of lumber used to manufacture wooden kitchen tables.
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The cost of order fillers in a warehouse. When demand increases significantly, the number of order fillers is increased, and when demand falls off significantly, the number is decreased.
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The salary of the plant’s quality control inspector, who inspects each batch of products.
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The cost of water and sewer service to the manufacturing plant. The local municipality charges a fixed rate per gallon for usage up to 10,000 gallons and a higher charge per gallon for usage above that point.
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The cost of an internet connection of $23 per month.
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The cost of an internet connection of $10 per month plus $2 per hour of usage above 10 hours.
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The cost to make copies of a given document at a printing shop, where the per-copy charge is reduced for customers who make more than 100 copies of the document.
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An increase in the per-kilowatt-hour charge by the local electric utility for usage above 5,000 kilowatt-hours to discourage excess usage and to level demand (especially in peak load times).
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Monthly rent of a clothing store in the SunnyVale Mall that pays a fixed rental charge of $1,000 per month plus 2% of gross sales receipts.
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Monthly rent of a shoe store in the SunnyVale Mall that pays 6% of gross sales receipts, up to a maximum of $3,000 per month as a rental charge.
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