Tirri Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Multiple Choice If the selling price is $28.20 per unit, the contribution margin per unit sold is closest to: о о O O $13.35 $8.15 $16.70 Cost per Uni $ 7.55 $3.95 $ 1.60 $10.05 $ 1.10 $ 0.65
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.
The variable cost per unit must be deducted from the selling price per unit so as to calculate the contribution margin per unit.
Variable cost are those cost which changes with the changing level of production / sales i.e. higher the production / sales more will be the variable cost and vice versa.
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