Match each of the following phrases with the term (a–g) that it most closely describes. Question 2 options: Applied overhead is more than actual overhead incurred A system that uses a different overhead rate for each activity Typically used by companies whose products are indistinguishable from each other Typically used by companies that make custom products A subsidiary ledger that maintains a separate account for each type of material Applied overhead is less than actual overhead incurred Stock ledger 1. Job order cost system 2. Process cost system 3. Activity-based costing 4. Underapplied overhead 5. Overapplied overhead 6. Finished goods ledger 7. Materials ledger
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.
Question 2 options:
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