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What type of organization is most likely to benefit from using activity-based costing for product costing?
Wiki User
∙ 11y ago
The companies benefiting the most from ABC would be companies with a significant amount of overhead pertaining to a diversity of activities in providing goods (or services) to customers whose demands also vary.
Wiki User
∙ 11y ago
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Why do you need product costing system?
needs of product costing system
What is by product costing costing?
Product cost accuracy is a term used in the accounting field. It essentially defines the amount of money it actually costs to produce a product.
What costing method considers variable factory overhead a product cost?
variable costing
Distinction between standard costing and actual costing?
Standard costing is process of determining the standard price require to produce one unit of product while actual costing system uses the actual prices of manufacturing one unit of product.
What is the difference between target costing and life cycle costing?
In Target costing system, comapnies tries to achieve target prices by reducing those parts of activity which are not increasing the value of product. Life cycle costing is a concept in which companies tries to read the overall process of development of product life cycle and tries to minimise the cost at area where it is not required or not increase the value of product.
Why do you need product costing system?
needs of product costing system
When is a job order costing system more appropriate than a process costing system?
Job order costing is more appropriate than process costing when the product being produced is a custom product
What is by product costing costing?
Product cost accuracy is a term used in the accounting field. It essentially defines the amount of money it actually costs to produce a product.
What costing method considers variable factory overhead a product cost?
variable costing
Distinction between standard costing and actual costing?
Standard costing is process of determining the standard price require to produce one unit of product while actual costing system uses the actual prices of manufacturing one unit of product.
How would a cost benefit analysis influence the choice of method to promote one product within your organisation?
With the help of cost-benefit analysis, an organization can decide what product will sell the most. This will also influence the advertising method used to promote a certain product.
Role of target costing?
Target costing refers to the design of a product and the processes used to produce it , so the ultimately the product can be manufactured at a cost that will enable the firm to make a profit when product is sold
What is the difference between service organization and manufacturing organization?
A service organization's end product is a service. A manufacturing organization's end product is a product.
What is functional costing How does it relate to the functional analysis?
Functional costing is a method of cost analysis that assigns costs to the functions of an organization or product, helping to identify areas of inefficiency and opportunities for cost reduction. It relates to functional analysis by providing a detailed understanding of how costs are incurred within each function of an organization or process, allowing for a more accurate assessment of cost drivers and performance metrics.
What is the difference between target costing and life cycle costing?
In Target costing system, comapnies tries to achieve target prices by reducing those parts of activity which are not increasing the value of product. Life cycle costing is a concept in which companies tries to read the overall process of development of product life cycle and tries to minimise the cost at area where it is not required or not increase the value of product.
How do you achieve total customer satisfaction organization need to do what?
By providing a friendly customer service and giving full disclosure about your product and how it will benefit your customer.
What is the absorption costing?
All cost associated with a particular product.
