Discuss Period Cost & Product Cost
Product Cost These are costs directly and indirectly identifiable with the product. They are direct materials, direct labor, and factory overhead. These costs provide no…
Accountancy Notes
Explain the major difference between managerial and financial accounting.
Financial is largely concerned with financial statements for external use by those who supply funds to the firm and by other persons who may have…
Explain Job-order & process costing.
Job Order Cost Accumulation System A job order cost accumulation system is most suitable where a single product or batch of products is manufactured according…
How the variable and fixed cost per unit will change as the level of activity (or cost driver) will increase? Why?
Total fixed costs do not change as production levels change within the relevant range; therefore, the level of production is not a factor in determining…
Present the flow of costs under periodic and perpetual cost accumulation systems.
PERIODIC COST ACCUMULATION SYSTEMS The first step in comprehending a periodic cost accumulation system is to understand the flow of costs as goods pass through…
What are the five bases commonly used to compute the factory overhead application rate, and when is each one appropriate to use?
These bases are commonly used to compute the factory overhead application rate: (1) units of production, (2) direct materials cost, (3) direct labor cost, (4)…
What is breakeven point (BEP)? In choosing between two production processes. Why will management not necessarily select the process with the lower BEP
A problem faced by management is selecting from among alternative production processes which have different fixed and variable costs. For example, management may be considering…
Job order or Process costing system
Management of company that manufactures small appliances is trying to decide whether to install a job order or process costing system. The manufacturing vice president…
What methods, document, and approvals are used to control materials inventories?
The more common methods of costing materials issued and inventories are: (1) First-in, first out (FIFO) (2) Average cost (3) Last- in, first out (LIFO)…
Elimination of inventories though a JIT system is believed to result in a number of different types of cost saving. Itemize the types of saving from a
Manufacturing processes are increasingly being based on the receipt of row materials from suppliers” just-in- time “for their used on the plant floor. When firm’s…