Question

In: Accounting

What are the alternative costing methods? Describe the scenario in which each costing method can best...

What are the alternative costing methods? Describe the scenario in which each costing method can best be used.

Solutions

Expert Solution

Followings are the alternative costing methods;

1. Job costing

2. Unit costing

3. Contract costing

4. Batch costing

5. Process costing

6. Operating costing

Let’s discuss each method one by one;

1. Job costing;

This method of costing is adopted for unique job or we can say that this method is suitable for products which are unique in nature.

2. Unit costing;

This method of costing is adopted for products that are manufactured by continuous activity.

3. Contract costing;

This method of costing is adopted in case of project that required heavy capital expenditures or required long time period for completion such as road, bridges etc.

4. Batch costing;

This method of costing is adopted in case of products produced in batches or we can say that when we produce some products in a batch then this method is adopted.

5. Process costing;

This method of costing is suitable in case of products that are passed through various process. In other words we can say that when a product is finished with the help of various independent processes then this method is adopted.

6. Operating costing;

This method of costing is suitable in case of various services such as Public Bus, Railways, Nursing etc.


Related Solutions

Discuss the methods for obtaining data. Describe each method.
Discuss the methods for obtaining data. Describe each method.
What are the advantages of each of below methods? Which method are you likely to accept?...
What are the advantages of each of below methods? Which method are you likely to accept? - payback period - average rate of return on initial investment - net present value (NPV)
Describe the major prospecting methods and give examples of each method
Describe the major prospecting methods and give examples of each method
Three retail giants, Best Buy, Amazon, and Target each use a different inventory costing method. Best...
Three retail giants, Best Buy, Amazon, and Target each use a different inventory costing method. Best Buy uses weighted-average cost, Amazon uses FIFO, and Target uses LIFO. Assume that all three retailers sell a popular shirt that retails for $30. To compare the impact of inventory costing method, we will also assume that all three retailers have the following inventory and sales data for the same period: Beginning inventory: 40 units @ $7.00 Purchases: 35 units @ $10.00 Sales: 50...
Identify the inventory costing method best described by each of the following separate statements. Assume a...
Identify the inventory costing method best described by each of the following separate statements. Assume a period of increasing costs. 1. Mimics the actual flow of inventory for most businesses. 2. Cost of goods sold approximates its current cost. 3. Precisely matches the costs of items with the revenues they generate. 4. Yields the lowest net income. 5. Has the lowest tax expense because of reporting the lowest net income. OPTIONS: WEIGHTED AVERAGE, SPECIFIC IDENTIFICATION, FIFO, OR LIFO
Discuss the 4 methods of depreciation. Which method is best for the hospitality industry? (400 words...
Discuss the 4 methods of depreciation. Which method is best for the hospitality industry? (400 words required. See direction sheet as a reminder for all directions) please write your own thoughts and research.
Match each scenario with the type or mode of selection that fits best. Answers can be...
Match each scenario with the type or mode of selection that fits best. Answers can be used more than once. Group of answer choices 1.A population of Madagascar hissing cockroaches lives in a woodpile. It suffers heavy predation from lizards. Because their heads are small, the lizards are unable to eat the very largest adult cockroaches, and instead prey upon small and medium sized adults. What type of selection do the lizards impose on the roaches? 2.Indian paintbrush flowers vary...
Describe three different methods for the detection exoplanets. For each method, explain what type of exoplanet...
Describe three different methods for the detection exoplanets. For each method, explain what type of exoplanet is the method most sensitive for detecting? i.e. large vs. small, close in vs. far out from its host star, cold vs. hot, massive vs. low mass
Describe and explain which method you believe is the “best method” for conducting a job analysis....
Describe and explain which method you believe is the “best method” for conducting a job analysis. Be specific as to why you chose this method. Keep a “job log” of your activities for 3 days and explain how they “match” your job description.
Obtaining Data. Discuss the methods for obtaining data. Describe each method.
Obtaining Data. Discuss the methods for obtaining data. Describe each method.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT