Cost classifications Aussie Corp. manufactures rugby jerseys for collegiate sports teams and sells its merchandise through university bookstores.Required: Identify a specific item in the company’s manufacturing, selling, or administrative processes for which the cost would be classified asa. Raw material.b. Direct labor.c. Variable manufacturing overhead.d. Fixed manufacturing overhead.e. Fixed administrative expense.f. Fixed indirect selling expense.g. Variable direct selling expense.
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.
Cost classifications Aussie Corp. manufactures rugby jerseys for collegiate sports teams and sells its merchandise through university bookstores.
Required: Identify a specific item in the company’s manufacturing, selling, or administrative processes for which the cost would be classified as
a. Raw material.
b. Direct labor.
c. Variable manufacturing overhead.
d. Fixed manufacturing overhead.
e. Fixed administrative expense.
f. Fixed indirect selling expense.
g. Variable direct selling expense.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
