COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Assigning cost to completed and uncompleted production.
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Computing the cost per equivalent unit.
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Calculating equivalent units of production.
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Analyzing physical flow of production units.
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Determining total cost for each manufacturing element.
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Detailed explanation-1: -The steps of process costing are; Step 1: summarize the flow of physical units. Step 2: Compute output in terms of equivalent units. Step 3: Calculate costs per equivalent unit costs.
Detailed explanation-2: -Understanding Production Costs To qualify as a production cost, an expense must be directly connected to generating revenue for the company. Total product costs can be determined by adding together the total direct materials and labor costs as well as the total manufacturing overhead costs.
Detailed explanation-3: -Physical flow analysis: Assessing the inventory is the first step in computing costs. This is done by determining the inventory’s cost-flow. The physical flow analysis involves tracking the units in the process regardless of their state of completion and scheduling or reconciling the physical flow.