Costing
Costing is same as cost accounting as it also includes the cost incurred in the production. Costing includes fixed, variable and manufacturing cost of the product. Costing is also known as absorption costing.
Common Cost Definition: A common cost is a cost that is common to a number of costing objects but cannot be traced to them individually. For example, the wage cost of the pilot of a 747 airliner is a common cost of all of
Committed Fixed Cost Definition: Committed fixed costs are those fixed costs that are difficult to adjust and that relate to the investment in facilities, equipment, and the basic organizational structure of a firm.
Effect of Change in Variable Cost and Sales Volume on Contribution Margin and Profitability: Learning Objectives: What is the effect of change in variable cost and sales volume on contribution margin and profitability. The following data is used to show the effects of changes
Effect of Change in Variable Cost, Fixed Cost and Sales Volume on Contribution Margin and Profitability: Learning Objectives: What is the effect of change in variable cost, fixed cost and sales volume on contribution margin and profitability? The following data is used to show
Effect of Change in Regular Sales Price on Contribution Margin and Profitability: Learning Objectives: What is the effect of changing regular sales price on the contribution margin and profitability of the firm? The following data is used to show the effect of changes in
Effect of Change in Fixed Cost and Sales Volume on Contribution Margin and Profitability: Learning Objectives: What is the effect of change in fixed costs and sales volume on contribution margin and profitability? The following data is used to show how changes in fixed costs
Definition and Explanation of Process Costing System: Cost accumulation procedures used by manufacturing concerns are classified as either job order costing or process costing. The Job Order Costing System chapter deals with the procedures applicable to job order costing. It is important to understand
Effect of Change in Fixed Cost, Sales Price and Sales Volume on Contribution Margin and Profitability: Learning Objectives: What is the effect of change in fixed cost, sales price and sales volume on contribution margin and profitability? The following data is used to show
Electronic Data Processing System (EDP System) for Materials Received and Issued: The preceding description of invoice approval and payment was for a manual operation performed by an accounts payable clerk or an invoice clerk. In an electronic data processing system (EDP system), the computer–to
Cost Classification for Decision Making (Decision Making Costs): Learning objective of this article: Define, explain, and give examples of cost classifications used in making decisions: differential costs, opportunity costs, and sunk costs. Costs can be classified for decision making. Costs are important feature of
Absorption Costing Definition Absorption costing is a costing method that includes all manufacturing costs – direct materials, direct labour, and both variable and fixed overhead – as part of the cost of a finished unit of product. This term is synonymous with full costing
Absorption Costing Approach to Pricing: Learning Objective of the Article: Compute the selling price of a product using the absorption costing approach. What are the advantages or benefits, disadvantages/limitations of absorption costing approach The absorption costing approach to cost plus pricing differs from the