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In: Accounting

Which product costing system distributes costs evenly across total production? Variable cost system Standard cost system...

Which product costing system distributes costs evenly across total production?

Variable cost system

Standard cost system

Process cost system

Job order cost system

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Expert Solution

Variable costing is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced. This addresses the issue of absorption costing that allows income to rise as production rises.

In accounting, a standard costing system is a tool for planning budgets, managing and controlling costs, and evaluating cost management performance. A standard costing system involves estimating the required costs of a production process.

Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced. Processing cost is used when nearly identical units are mass produced.

Job order costing or job costing is a system for assigning manufacturing costs to an individual product or batches of products. Generally, the job order costing system is used only when the products manufactured are sufficiently different from each other.

ekkarill92 answered 1 year ago
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