Methods of costing, Cost Accounting

Assignment Help:

METHODS OF COSTING:

1. Job costing:  Job costing is the essential costing technique appropriate to those industries somewhere the work consist of separate contracts, or batches, each of which is approved by a precise contract or order.

2.Contract costing:  It is the type of exact order costing, usually related where work is agree to customer's particular requirements and every order is of extended period for example a building construction etc.

3. Batch costing: It is that type of exact order costing which applies where related articles are manufactured in batches either for sale or for make use of within the undertaking.

4. Process costing:  This technique of costing is appropriate where goods or services result from a series of continuous or repetitive operations or processes and products are the same and cannot be isolated.

5. Operation costing: It defines to those techniques where every operation in every stage of production or process is individually planned. After that the cost of over unit is determined.

6. Unit costing/ (Output costing / Single costing): This method is used when the production is consistent and the same and a single article is formed.  The entire production cost is divided by the number of units used to get unit or output cost Example:  mining, breweries etc.

7. Operating costing:  This technique is employed where expenses are incurred for providing services like those rendered by electricity cost ,transport cost, etc.

8. Departmental costing: This defines the technique of ascertaining the cost of operating a cost or department centre. total cost of every department is as- curtained and divided by entire units produced in that department to arrive at unit cost.

9. Composite costing /Multiple: in this technique, the cost of different parts of production is combined after discovering the cost of every and each part manufactured.  This technique is appropriate to companies where a product consists of of many assembled parts.

                                 SPECIMEN OF A COST SHEET

138_cost sheet.png


Related Discussions:- Methods of costing

Variance analysis and standard costing, Variance Analysis and Standard Cost...

Variance Analysis and Standard Costing Standard costing is defined with CIMA like a technique that uses standards for revenues and costs for the purpose of control via varianc

Marginal costing from financial information for management, prepare a trad...

prepare a trading and profit and loss accounts for the period using marginal costing and absorption costing

Break Even point, #question.ABC Corportaion produces and sell two products....

#question.ABC Corportaion produces and sell two products. In the most recent month, Product 123 had sales of $33,000 and variable expenses of $15,840. Product 245 had sales of $42,

Commodities to stock, Commodities to Stock Employ Material Req...

Commodities to Stock Employ Material Requirement Planning From the Master Production Schedule the manager has determined such the products to be produced. A

Considerations in variance investigation, Considerations in Variance Invest...

Considerations in Variance Investigation As already notice above, not all variances are investigated; this is only the material and meaningful as for cost control reasons vari

Income and expenditure account, The following is a summary of a cash book f...

The following is a summary of a cash book for the year ended 31 April 2012 Payments                              $              Receipts                                    $

Calculate the cost per unit for products, Chemical Recovery Company uses co...

Chemical Recovery Company uses common machinery to manufacture two products.  Each year, the company has a total of four productions runs, which is two production runs for each pro

Cost estimation methods, using the high low method how do i calculate the c...

using the high low method how do i calculate the costs that are expected when the output expected is out of the range given for example cost prdctn volume 110000

Prepare cash budget of a company, Prepare Cash Budget of a Company The...

Prepare Cash Budget of a Company The given information concerned to the proposed budget for a company for the months ending on 31 December 1996. Additional Information

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd