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
This is difficult to perceive cash maintained in the vault as an investment. Fairly, you would be thinking that if we invest cash, then how can cash itself be an investment? Howeve

Keira Knightley Company buys a piece of equipment for $36,442 that will last for 7 years. The equipment will generate cash flows of $7,000 per year and will have no salvage value a

Methods of Allocating Service Costs Direct Method The service costs are merely allocated to the production department according to the usage of the services given. St

10) Mike Taylor, the owner of Tennessee River Boat Rentals, is estimating the cost of operating his boat rental company next year. He expects to have 450 rentals during 200Z. The f

Q. Explain Break-even revenue? Sales revenue earned would give no profit and no loss. It can be computed by multiplying break-even volume (above) by products selling price, or

Planned                            Actual                Production                                                         92,000 units                     87,000 units

A company has developed a new product which it will launch next month. During the initial production phase the company expects to produce 6,400 units in batches of 100 units. The f

preparation of costsheet

Problem 4-12 Multiproduct CVP [LO 4] Fidelity Multimedia sells audio and video equipment and car stereo products. After performing a study of fixed and variable costs in the prior

A retail dealer in garments is currently selling 24000 shirts annually. He supplies the following details for the year ended 31st December,2007. Rs Selling Price per shirt