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needs of product costing system
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.
variable 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.
to undersrand
needs of product costing system
Job order costing is more appropriate than process costing when the product being produced is a custom product
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.
variable 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.
in marginal costing key factor and limitation factor is also available which may put limits on produduction unit and sales unit.
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
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.
All cost associated with a particular product.
An activity-based absorption costing system defines the cost by how many activities a product unit uses. A traditional absorption costing system defines the cost by how much money went into making the product unit.
marginal costing is recommended by IAS and absorption costing is not recommended by IAS,marginal costing is used for internal purposes and absorption costing is ysed for external purposes,in marginal costing the fixed production overheads are not calculated as a product cost and in absorption costing the fixed prodution overheads are calculated as product cost.