Which of the following statements are true? (select all that apply) O the cost of direct laborers who assemble car seats would be considered conversion costs O the main difference between job-costing and process-costing is the extent of averaging used to compute unit costs Job-costing assigns the cost of direct materials, direct labor and manufacturing overhead to units of production, while process-costing only assigns conversion costs to completed units of production In job-costing, the same amount of overhead is typically allocated to all jobs In process costing, each unit uses approximately the same amount of resources In job-costing, simple averaging is used to determine the cost of the cost object
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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