COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Job costing
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Batch costing
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Contract costing
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Process costing
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Detailed explanation-1: -Batch costing is generally applied in manufacturing industry making readymade garments, toy manufacturing industries, tyre and tubes manufacturing companies, pharmaceutical industry, etc.
Detailed explanation-2: -The formula for batch costing is as follows: Batch Costing = (Total Cost of Goods Produced / Number of Units Produced) x Number of Units in Batch. For example, if the total cost of goods produced is ₹100, 000 and the number of units produced is 10, 000, then the batch cost would be ₹10 per unit.
Detailed explanation-3: -Standard costing Standard costing is one of the most common costing methodologies employed by manufacturing operations.
Detailed explanation-4: -Batch cost is the cluster of costs incurred when a group of products or services are produced, and which cannot be identified to specific products or services within the group. For cost accounting purposes, it may be considered necessary to assign the batch cost to individual units within a batch.