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Specific Order Costing
This is a broad costing system that is applicable where work jobs consist of separate jobs, batches or contracts. Every job or contract or batch is a cost unit and in most cases, it is different from another. Every order made can be recognized separately and the system is designed to find the cost of each order. Exact order costing is subdivided into as:
1. Batch costing
2. Job costing
3. Contract costing
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Explain the value attached to this common exercise undertaken by Accountants.
Superior Door Company sells pre-hung doors to home builders. The doors are sold for $60 each. Variable costs are $42 per door and fixed costs total $450,000 per year. The company i
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