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Does Activity Based Costing produce an accurate costing picture?
Hi Activity Based Costing could be seen as the 'Cause-and-Effect' realtionship in the costs. If we extend this logic then we can segregate all the costs in four sections. a) Product Costs b) Customer Costs c) Business Sustaining Costs d) Cost available to use In this sense the Activity Basedd Costing gives an accurate costing picture.
Features of differential costing?
The features of differential costing include residual costs, variable costs, future costs, and making choices among alternative.
If a 20 oz bottle of Powerade costs US 1.25 how much would a gallon cost?
A gallon contains 128 ounces. If a 20 oz bottle of Powerade costs $1.25, then the cost per ounce is $1.25 / 20 oz = $0.0625 per ounce. To find the cost of a gallon, multiply the cost per ounce by the number of ounces in a gallon: 128 oz × $0.0625/oz = $8.00. Therefore, a gallon of Powerade would cost $8.00.
How do variable costing and absorption costing differ?
marginal costing is also known as contribution costing. its a costing method that's includes only a variable cost of a product no attempt is made to allocate or appropriate fixed costs to cost centers. the setting of prices is basically based on the variable costs of making a product. if the prices are set above this unit cost then each item sold will make a condition to fixed costs. on the other hand absorption costing or full costing is an approach to the costing of products that allocated all costs of production to cost centers. The aim is to ensure that all business costs are covered.
Direct costing as a technique of costing?
direct costing is a technique in which costs are classified as direct cost or indirect cost.
What is cost as a verb?
costs, costing
What is the difference between over costing under costing?
Over costing means charging more costs to items than it's actual cost while under costing means charging less cost then actual costs.
Difference between absorption costing AND target costing?
Target costing is when you have a goal for the project and its costs. Absorption costing is when you need to fix the excess spending.
What are different costing methods?
Different costing methods include job costing, process costing, activity-based costing (ABC), and standard costing. Job costing assigns costs to specific batches or projects, making it ideal for customized products. Process costing averages costs over continuous, homogeneous processes, suitable for mass production. Activity-based costing allocates overhead based on actual activities, providing more accurate cost insights, while standard costing involves setting budgeted costs for products to streamline variance analysis.
What are the stages of accounting for costs?
direct costs,indirect costs,sunk costs, Activity based costing.
What are the limitations of absorption costing?
Absorption costing does not understand the importance of fixed costs. In absortption costing, fixed costs are absorbed to unit, therefore it is hard to distinguish between variable and fixed costs. And also, the variability of profit will cause confusion, the reason is that the net profit varies with both sales and stock changed under absorption costing. Absorption costing does not understand the importance of fixed costs. In absortption costing, fixed costs are absorbed to unit, therefore it is hard to distinguish between variable and fixed costs. And also, the variability of profit will cause confusion, the reason is that the net profit varies with both sales and stock changed under absorption costing.
What is the traditional costing formula?
Traditional costing is a method in accounting where the manufacturing overhead costs are allocated to the products manufactured. It is also called as conventional costing.
