Question

Q2. “A costing system that simply records for the purpose of fixing sale prices has accomplished...

Q2. “A costing system that simply records for the purpose of fixing sale prices has accomplished only a small part of its mission. "Discuss. What other functions does costing perform?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Functions of Costing

  • Ascertain the cost per unit of every product that the company manufactures.
  • To identify the wastages whether in material,expense,time and tools.
  • Suggest ways to minimise the wastage.
  • Provide data for fixing sale prices.
  • Calculate profitability of each of the company's products, and figure out ways to maximise profits.
  • Control of raw material and raw material ordering.
  • Cost control of materials,labor and other miscellaneous expenses.
  • Provide data to the managment to interpret the data and make business decisions.
  • Helping managment with incentive plans,preparation of budgets and setting up budgetory controls
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Q2) Micro Products, Inc., uses a traditional product costing system to assign overhead costs uniformly to...
Q2) Micro Products, Inc., uses a traditional product costing system to assign overhead costs uniformly to all products. To meet Food and Drug Administration (FDA) requirements and to assure its customers of safe, sanitary, and nutritious food, Micro engages in a high level of quality control. Micro assigns its quality-control overhead costs to all products at a rate of 25% of direct labour costs. Its direct labour cost for the month of June for its dessert line is OMR60,000. In...
Classify whether each one is JOB ORDER COSTING SYSTEM or PROCESS COSTING SYSTEM? And Why 1....
Classify whether each one is JOB ORDER COSTING SYSTEM or PROCESS COSTING SYSTEM? And Why 1. Famous Cheese Spread was created by a family in a small town in Nebraska. Its website says it sells to around 60 grocery stores in central and eastern Nebraska and also wholesale to Affiliated Midwest, who distributes the product to more than 850 stores in 16 states. Their one product consists of a blend of American cheese, cheddar cheese, salad dressing, pimentos, green peppers,...
2. Leeds Catering uses activity-based costing for allocating its overhead costs. The company has provided the...
2. Leeds Catering uses activity-based costing for allocating its overhead costs. The company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Preparing Arranging Meals Functions Wages £0.80 £180.00 Supplies £0.40 £290.00 Other expenses £0.20 £140.00 The number of meals served is the measure of activity for the Preparing Meals activity cost pool. The number of functions catered is used as the activity measure for the Arranging Functions activity cost pool. Management...
Consider the college that has two prices for its services. It charges list price (full tuition)...
Consider the college that has two prices for its services. It charges list price (full tuition) to only a small portion of their students. Everyone else gets a discount (scholarship). This college does not set a low price and charge a tuition premium to those few individuals who are not star students, athletes, or from low-income backgrounds. (a) In terms of perceived gains and losses, describe how the recipient of a scholarship is likely to perceive the price he or...
A newly developed hospital requires an Electronic Decision Support System (DSS) for clinicians. This DSS is...
A newly developed hospital requires an Electronic Decision Support System (DSS) for clinicians. This DSS is required to have all the necessary features to help the practice. Develop a Software Requirements Specification (SRS) document that identifies all the necessary requirements for the system. This document must strictly follow the IEEE template uploaded on canvas. However, there may be sections in the template that may not apply to the project, these sections can be eliminated. Use the template below to answer...
Backflush Costing: Variation 2 Potter Company has installed a JIT purchasing and manufacturing system and is...
Backflush Costing: Variation 2 Potter Company has installed a JIT purchasing and manufacturing system and is using backflush accounting for its cost flows. It currently uses a two-trigger approach with the purchase of materials as the first trigger point and the completion of goods as the second trigger point. During the month of June, Potter had the following transactions: Raw materials purchased $245,000 Direct labor cost 41,500 Overhead cost 208,000 Conversion cost applied 269,750* *$41,500 labor plus $228,250 overhead. There...
Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company...
Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:    Molding Fabrication Total Machine-hours 21,000 32,000 53,000 Fixed manufacturing overhead cost $ 700,000 $ 280,000 $ 980,000 Variable manufacturing overhead cost per machine-hour $ 3.00 $ 1.00    During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It...
Consider the college that has two prices for its services. It charges list price (full tuition)...
Consider the college that has two prices for its services. It charges list price (full tuition) to only a small portion of their students. Everyone else gets a discount (scholarship). This college does not set a low list price and charge a tuition premium to those few individuals who are not star students, athletes, or from low-income backgrounds. (a) Assume that the two prices are framed in terms of full tuition and scholarships. In terms of perceived gains and losses,...
Consider the college that has two prices for its services. It charges list price (full tuition)...
Consider the college that has two prices for its services. It charges list price (full tuition) to only a small portion of their students. Everyone else gets a discount (scholarship). This college does not set a low list price and charge a tuition premium to those few individuals who are not star students, athletes, or from low-income backgrounds. (a) Assume that the two prices are framed in terms of full tuition and scholarships. In terms of perceived gains and losses,...
Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company...
Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:    Molding Fabrication Total Machine-hours 34,000 44,000 78,000 Fixed manufacturing overhead costs $ 730,000 $ 300,000 $ 1,030,000 Variable manufacturing overhead cost per machine-hour $ 6.00 $ 6.00    During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT