Methods of costing, Cost Accounting

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

Posted Date: 10/15/2012 6:54:30 AM | Location : United States







Related Discussions:- Methods of costing, Assignment Help, Ask Question on Methods of costing, Get Answer, Expert's Help, Methods of costing Discussions

Write discussion on Methods of costing
Your posts are moderated
Related Questions
We have earlier explained working capital by total current assets less current liabilities. It, in other words, implies that all the assets held through the business along with the

Budgetary Planning and Control - Accounting Techniques A budget is a   plan of action expressed in monetary terms. Therefore it is a quantified plan of what one intends to do.

Chrome-It, Inc., manufactures special chromed parts made to the order and specifications of the customer.  It has two production departments, stamping and plating, and two service


Alger Corp wants to buy some construction equipment for $50,000, which has a useful life of 4 years with no salvage value. Alger uses straight-line depreciation. Alger has a tax ra

You are the manager of a firm that sells output at a price of $40 per unit. You are interested in hiring a new worker who will increase your firm's output by 2,000 units per year.

importance of marginal costing &standing costing

As a potential investor, what is the problem with different countries having different accounting standards? As the president of a multinational company, what is the problem with

SALES REVENUE VARIANCE (SRV) The word 'Sales Variance' is indicated by the expression 'operating profit variance due to sales' by ICMA.  It is described as 'the difference betw

Traditional budgeting  systems are  incremental  in nature and  tend  to  focus on  cost  centres.  Activity-based  budgeting  links  business  planning  to  the  budgeting  proces