The Hy-Tech Services Corporation employs researchers based in countries around the world. Employee time is the basis upon which charges to many customers are made. The geographically dispersed nature of its operations makes it extremely difficult for the payroll staff to collect time records, so the management team authorizes the design of an in-house, web-based timekeeping system. The project team incurs the following costs: Concept design - 2,500; Evaluation of design alternatives - 3,700; Determination of required technology - 8,100; Final selection of alternatives - 1,400; Software design - 28,000; Software coding - 42,000; Quality assurance testing - 30,000; Data conversion costs - 3,900; Training - 14,000; Overhead allocation - 6,900; General and administrative costs - 11,200; Ongoing maintenance costs - 6,000. Required: Compute the amount of intangible asset recognized from the given transactions
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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