Match the items in the two columns below by entering the appropriate code letter in the space provided. A. Managerial accounting F. Work in process inventory B. Financial accounting G. Direct materials C. Planning H. Manufacturing overhead D. Directing I. Period costs E. Controlling J. Value chain 1. The cost of products that are partially complete. 2. The function of keeping activities in accordance with plans. 3. Primarily concerned with internal users and reports pertain to subunits of the entity. 4. Materials that can be physically and directly associated with manufacturing a product. 5. The function of setting goals and objectives. 6. Indirect costs of manufacturing a product. 7. Primarily concerned with external users and reports pertain to the entity as a whole. 8. Costs that are noninventoriable. 9. All business processes associated with providing a product or service. 10. The function of coordinating diverse activities to produce a smooth-running operation.
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.
Question#5
Match the items in the two columns below by entering the appropriate code letter in the space provided.
A. Managerial accounting F. Work in process inventory
B. Financial accounting G. Direct materials
C. Planning H. Manufacturing overhead
D. Directing I. Period costs
E. Controlling J. Value chain
1. The cost of products that are partially complete.
2. The function of keeping activities in accordance with plans.
3. Primarily concerned with internal users and reports pertain to subunits of the entity.
4. Materials that can be physically and directly associated with manufacturing a product.
5. The function of setting goals and objectives.
6. Indirect costs of manufacturing a product.
7. Primarily concerned with external users and reports pertain to the entity as a whole.
8. Costs that are noninventoriable.
9. All business processes associated with providing a product or service.
10. The function of coordinating diverse activities to produce a smooth-running operation.
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