Product costing

fickernuit's version from 2016-03-03 23:02


Question Answer
Firms that need costing systemHeterogenous and custom made products
Cost accumulation system defines(A) cost object (b) method of assigning costs
Valuation method specifiesHow product will be measured
Valuation system using actual overheadActual cost system
Service business with few customers/low volume may use this system Actual cost system
Uses applied/predetermined overheadNormal cost system
Predetermined benchmarksStandards
Synonymous with client engagement project or contractJob
Usually small in comparison to other products in cost systemDirect labor
Formula for unit costProcess cost/equivalent unit produced
employs aspects of job order and process costingHybrid costing
Product is processed in same series of stepsSequential product flow
Portions of work are done simultaneously then brought together in final processParallel product flow
Product moves to different departments within plant depending on final productSelective product flow
Cost per equivalent unitManufacturing costs for period/equivalent units for period
Blends together units and costs from prior and current periodsWeighted averaged method
Fido and weighted average yield what type of units in a lean productionSimilar units
Superior in cost controlFifo

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