The company produced 4000 units in July. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. She responded with the following information. Variable Costs Total Costs Material Costs 36000 50000 Labor Costs 54000 70000 Production Facilities cost 10000 16000 On the basis of above information, what is the estimated cost for 4350 units from the following? Select one: a. 144750 b. 148500 c. 149750 d. 162000
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.
The company produced 4000 units in July. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. She responded with the following information.
|
|
Variable Costs |
Total Costs |
|
Material Costs |
36000 |
50000 |
|
Labor Costs |
54000 |
70000 |
|
Production Facilities cost |
10000 |
16000 |
On the basis of above information, what is the estimated cost for 4350 units from the following?
The sales and profit for two years are as below:
Sales Profit
2019 25000 8000
2020 20000 5000
What will be the correct option for Sales required to earn a profit of OMR 17000?
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