Hun Hakeem is the manager at Stella Design. He wants to maximize the total profit from two furniture items; a home office set and a playroom set. It is important that the showroom space of 40,000 square feet to be filled with these sets. The home office sets will occupy an average of 400 square feet each, and the playroom sets will occupy an average of 500 square feet each. The manager estimates that it requires approximately 14 minutes to unload a home office set and 7 minutes to unload a playroom set. There are 980 minutes available for unloading. The playroom sets will produce a profit of RM1250 each, and the home office sets will produce a profit of RM1500 each. The manager also has decided that a minimum of 30 playroom sets should be ordered. Formulate a linear programming model for this problem and solve the problem graphically.
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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