7. Atheena, controller for the Malabon plant of Zalucki, Inc., wanted to determine the cost behavior of moving materials throughout the plant. She accumulated the following data on the number of moves (from 100 to 800, in increments of 100) and the total cost of moving materials at those levels of moves. Number of Moves Total Cost P 300 465 340 10 20 30 40 50 850 1000 60 70 80 1260 1360 1420 REQUIRED: a. Compute the cost formula for moving materials using the high-low method. Calculate the predicted cost per month with 55 moves using the high-low formula. b. Compute the cost formula for moving materials using the method of least squares. Using the regression cost formula, what is the predicted cost for a month with 55 moves? c. Using the method of least squares cost formula, prepare a flexible budget with separate variable and fixed categories for the costs of moving materials at 25, 45, and 75 moves.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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