Cost data determination, Cost Accounting

Cost Data Determination

How does one decide the cost data for products and the services which are the end result of the productive processes? The response to this question is much more complex than you might suspect. Multiple persons, parts, and processes may be required to bring about the deliverable output. Think about an automobile manufacturer; what is the dollar amount of "cost" for the hundreds of cars which are in various stages of completion at the end of the month? After reading this chapter, and the next, you will have a improved sense of how business information systems are used to generate the important cost data.

This chapter gives stress on the job costing technique/method, and the next chapter will look more closely at the process costing and the other options. At the outset, note that the job costing is best suitable to those situations where goods and services are produced upon receipt of the customer order, according to the customer specifications, or in separate batches as a result, number of companies will refer to this costing method/technique as the job order costing method. For instance, a ship builder would likely accumulate costs for every ship produced. An aircraft manufacturer would find this method/technique logical. Construction companies and home makers would naturally gravitate to a job costing approach. Each task is somewhat unique. Materials and labour can be readily traced to each task, and the cost assignment logically.

 

 

Posted Date: 7/21/2012 5:07:56 AM | Location : United States







Related Discussions:- Cost data determination, Assignment Help, Ask Question on Cost data determination, Get Answer, Expert's Help, Cost data determination Discussions

Write discussion on Cost data determination
Your posts are moderated
Related Questions
ACRS is a system of depreciation started by the Economic Recovery Tax Act of 1981. ACRS depreciation relies on recovery periods in spite of useful life. These periods were preset b

for the year ended31st dec 2008manufacturing accountshowing costof row material,manufacturing expenses and the cost of goods manufactured& tradind account where stock of row mater

An industrial drill costs $60.000 to purchase and $10,000 to install seven years ago. The market value now is $33.000 and this will decline by 12% of current value each year for th

Material Usage Variance (MUV): This is the variation between the actual quantity of material consumed and standard quantity which should have been consumed, expressed in terms

A firm uses capital and labor to produce a single output good. The production function is given by F(K, L) = K 2 L where K is the amount of capital and L is the amount of labor em

1. Wrangle Corporation stock sells at a price of $80 a share and the riskless rate is 7%. Calculate the price of a 9-month call option on Wrangle stock with an exercise price of $7

A company produces three types of items. A single machine is used to produce the three items on a cyclical basis. The company has the policy that every item is produced once during


The enhancing qualitative characteristic of understandability means that information should be understood by a those who are experts int eh interpretation of financial informat

Question: At the beginning of the year, Asquith Company Ltd initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help asse