Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The ecently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The ollowing costs were incurred during the past 12 months: Month January Pints of Applesauce Energy Cost Produced 36,800 $ 25,200 February March April 22,800 23,900 23,800 23,800 25,800 24,250 May 31,800 24,700 June 33,800 25,150 July August 41,800 29,800 31,800 24,600 September 31.800 24.800
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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