Home Insert Page Layout Formulas Data Review View Cause-and-Effect Relationship Between Allocation Base and Activity Cost Standard Job Special Job Total 2 Number of printing jobs 3 Price per job 4 Cost of supplies per job 5 Direct labor costs per job 6 Printing machine-hours per job 7 Cost of printing machine operations 400 200 $ 600 $ 100 $ 90 $ 750 $ 125 $ 100 10 10 $ 75,000 Indirect costs of operating printing machines increase with printing machine-hours 9 Setup-hours per job 10 Setup costs 11 Total number of purchase orders 12 Purchase order costs 4 $ 45,000 Indirect setup costs increase with setup-hours 400 500 $ 18,000 Indirect purchase order costs increase with number of purchase orders $ 20,000 Design costs are allocated to standard and special jobs based on a special study of the design |department 13 14 Design costs $4,000 $16,000 15 Marketing costs as a percentage of 16 revenues $ 19,500 $ 24,000 Demand for administrative resources increases with direct labor costs 5% 5% 17 Administration costs
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.
Speediprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Speediprint classifies its various printing jobs as standard jobs or special jobs. Speediprint’s simple
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Q.How might Speediprint use the new cost information from its activity-based costing system to better manage its business?
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