ECONOMICS

Detailed explanation-1: -Standard costing Standard costing is one of the most common costing methodologies employed by manufacturing operations. Standard costing methodology requires manufacturers to establish “standard” rates for materials and labor that are used in production and/or inventory costing.

Detailed explanation-2: -ABC systems are used in both manufacturing and nonmanufacturing companies.

Detailed explanation-3: -Normal costing is used to derive the cost of a product. This approach applies actual direct costs to a product, as well as a standard overhead rate.

Detailed explanation-4: -Process costing is an important product costing method for manufacturing companies that mass produce a large volume of similar products or units of output.