Answered: Differentiate between contract costing…

Business

Accounting

Differentiate between contract costing and service costing. Provide your answer in table form with 4 differences.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 12Q: What are the four main sections of a cost of production summary?

See similar textbooks

Related questions

Q: Distinguish between Period cost and Product cost? Give two examples of each cos

A: Classification of costs on the basis of functions:- 1. Product Cost 2. Period Cost

Q: In tabular form, provide 3 similarities between activity based costing method and traditional method…

A: Activity based costing and traditional costing are two important methods used to allocate the…

Q: please Give three (3) examples of costs that are associated with WHS training:

A: Costs:- In accounting terms cost is defined as the cash amount that is given up for a particular…

Q: In the blank next to the following terms, place the letter A through D corresponding to the best…

A: Cost: It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: discuss the various costing methods?

A: Various Methods of costing are as follows: 1) Unit Costing 2) Operating Costing 3) Contract Costing…

Q: Give suitable explanation on (i) Cost; (ii) Cost Objects; (iii) Cost Driver Discuss the different…

A: (a) Cost : The amount of expenditure incurred on or attributable to a specified article, product or…

Q: What modifications are made to the cost classification of product costs in estimating service costs?

A: Cost classification refers to the separation of various expenses into different categories. It is…

Q: while doing the overhead summary sheet do we have to use that direct cost?

A: Direct cost means cost of direct material, direct labour and direct expenses that are incurred for…

Q: Explain what activity-based costing is, and a brief explanation regarding how ABC improves the…

A: In costing their are different types of overheads and also different types of methods to allocate…

Q: List 7 industries which are most likely to apply contract costing in their operation

A: Contract Costing- It is specific order costing where work is undertaken according to customer's…

Q: the following standard ca ued by the cost accountin standard costing policy of unit Standard cost

Q: What process is used to assign costs in an ABC system? Provide numerical example. I want the…

A: ABC or Activity based costing system- It is based upon the fact that activities cause costs and…

Q: List and explain four purposes of product costing.

A: Product costing: The process of assigning the production costs to all output of the organization is…

Q: By use of relevant examples, differentiate between the following: a. Relevant costs and Non-relevant…

A: In general words, cost means money that is spent to gain something. In accounting terms, the cost is…

Q: What are ordering costs? What are setup costs? What are carrying costs? Provide examples of each…

A: Cost is the amount incurred on buying an item of getting a job done. There are various types of cost…

Q: Provide 2 differences between traditional and activity based costing system.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Do you think it is possible to set standard for delivery of service, which are primarily dictated by…

A: Standards are set for efficient utilization of operation resources and to perform the activity with…

Q: Use T-accounts to showthe flow of costs in ajob-order costing system.

A: Every industry maintains different inventory accounts and every industry can use job order costing.…

Q: What is costing system refinement? Describe three guidelines for refinement.

A: Broad averaging is also known as peanut butter cost is a costing approach of distributing the…

Q: Which one of the following is another name for product costs? Select one: a. Direct costs b. Period…

A: Product cost means the cost of producing one unit of finished goods.

Q: Describe the qualities and aims of cost accounting, as well as the purpose and significance of a…

A: The Definition of Cost AccountingCA is a field of accounting that focuses on cost and derives all…

Q: ILLUSTRATE THE VARIOUS COST CLASSIFICATIONS. (PLEASE INCLUDE PHOTOS OR TEXT FOR THE EXPLANATION)…

A: Direct costs These are the costs a company can easily relate to a specific cost object.…

Q: Briefly describe the methods of calculation of costs in practice. Provide the comparison of both as…

A: Cost refers to the amount that is spent by the company to earn a profit. For example, advertisement…

Q: Explain the four steps necessary to prepare a Production Cost Report?

A: Production cost report shows the total cost incurred on the production. This report classifies and…

Q: diffentiate between contract costing and service costing

A: Contract costing is the costing method adopted to do the cost accounting for a specific contract…

Q: (a) Explain the difference between the throughput and absorption costing methods.

A: "Since you have asked multiple questions, we will solve only first question for you. If you want any…

Q: The following statements are correct objective of cost accounting except: Ascertainment of cost…

A: Answer: Objective of Cost accounting includes: Ascertainment of cost: It means to calculate the…

Q: Please classify the following cost: advertising expenses, by choosing one of the options below. O…

A: Advertising expense is a revenue expense incurred on the selling and distribution of goods and…

Q: rovide a detailed description of the decision-making process i

A: Decision-making process: Decision making can be defined as the process of making choices through the…

Q: Discuss the history of ABC method (Use references if you use any) Define the following with…

A: Activity-based costing a method of assigning overheads based on usage of a particular activity. It…

Q: What are the four steps to developing an activity-based costing system?

A: Activity-based costing (ABC): Activity based costing (ABC) framework was created to manage the…

Q: Describe how process costing is different than job costing and identify at least three differences.

A: Job Costing - It involves customized contracts in which cost for these contracts are calculated and…

Q: What is the proper order of tasks in an ABC system? a.identify the cost pools, identify the cost…

A: Under ABC costing, the overhead is applied to production one the basis of different activities being…

Q: Distinguish between the qualities and aims of cost accounting, as well as between the nature and…

A: The question deals with the qualities and aims of cost accounting, as well as between the nature and…

Q: In a tabular form, provide 3 similarities and 3 differences each between Activity based costing…

A: Activity based costing and traditional costing are two important methods used to allocate the…

Q: Which of the following statements is true? (You may select more than one answer.)a. Conversion costs…

Q: Please briefly describe (1) the three main differences between the traditional overhead allocation…

A: Overhead refers to the number of indirect expenses incurred during the production of products in the…

Q: Explain briefly the issues with Activity Based Costing

A: Activity based costing is a costing system in which indirect costs which are also known as overhead…

Q: Which of the following is a correct statement? Check only those that are correct. Choose All That…

A: Cost tracing refers to the process of matching a cost with the product which is being produced.…

Q: Describe three guidelines for costing system refinement.?

A: Definition: Cost system refinement: Cost system refinement associates the overhead cost of…

Question

Differentiate between contract costing and service costing. Provide your answer in table form with 4 differences.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Select and “X” in the column that corresponds to the cost classification for each of the following scenarios. Some items may fit in more than one column.
Fill the cost classification in the table.
a. Prepare a contribution margin by product report. Calculate the contribution margin ratio for each. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
Complete the information in the cost computations shown here:
Using the costs listed in the previous problem, classify the costs as either product costs or period costs.
What are the four main sections of a cost of production summary?
In tabular form, provide 3 similarities between activity based costing method and traditional method of charging overheads.
Discuss four frequently encountered problems when collecting cost data on variables included in a cost function.
This topic is about cost accounting. FIFO METHOD. see the pictures attached thank you
Distinguish between Period cost and Product cost? Give two examples of each cos
Allocate the service cost using the following step method.
Matching Following are a number of key terms and concepts introduced in thechapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note thatnot all key terms and concepts will be used. Answers are provided at the end of thischapter.a. Cost–volume–profit analysisb. Cost formulac. Contribution margind. Contribution margin formatincome statemente. Linearity assumptionf. Contribution margin ratiog. Operating leverageh. Sales mixi. Break-even pointj. High–low techniquek. Managerial accountingl. Management processm. Variable costn. Fixed costo. Relevant rangep. Mixed (semivariable) costq. Cost behavior pattern____ 1. The proportion of total sales represented by various products or categoriesof products.____ 2. The difference between revenues and variable costs.____ 3. The concept that operating income changes proportionately more than revenues for any given change in revenues.____ 4. The…