what is job costing and process costing?
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refer to this notes \n\nhttp://www.futureaccountant.com/process-costing/
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Cost accounting is the process of tracking, recording and analyzing costs associated with the products or activities of an organization. In modern accounting, costs are measured in accordance with the Generally Accepted Accounting Principles (GAAP). GAAP reporting records historical events and assigns a monetary value to each event that has taken place. Costs are measured in units of currency by convention. Cost accounting could also be defined as a kind of management accounting that translates the Supply Chain (the series of events in the production process that, in concert, result in a product) into financial values. Managers use cost accounting to support decision making to reduce a company's costs and improve its profitability.\n\nThere are at least four approaches:\n\n    * Standard Cost Accounting\n    * Activity-based Costing\n    * Throughput Accounting\n    * Marginal Costing\n\n\nOrigins\n\nCost accounting has long been used to help managers understand the costs of running a business. Modern cost accounting originated during the industrial revolution, when the complexities of running a large scale business led to the development of systems for recording and tracking costs to help business owners and managers make decisions.\n\nIn the early industrial age, most of the costs incurred by a business were what modern accountants call "variable costs" because they varied directly with the amount of production. Money was spent on labor, raw materials, power to run a factory, etc. in direct proportion to production. Managers could simply total the variable costs for a product and use this as a rough guide for decision-making.\n\nSome costs tend to remain the same even during busy periods, unlike variable costs which rise and fall with volume of work. Over time, the importance of these "fixed costs" has become more important to managers. Examples of fixed costs include the depreciation of plant and equipment, and the cost of departments such as maintenance, tooling, production control, purchasing, quality control, storage and handling, plant supervision and engineering. In the early twentieth century, these costs were of little importance to most businesses. However, in the twenty-first century, these costs are often more important than the variable cost of a product, and allocating them to a broad range of products can lead to bad decision making. Managers must understand fixed costs in order to make decisions about products and pricing.\n\nFor example: A company produced railway coaches and had only one product. To make each coach, the company needed to purchase $60 of raw materials and components, and pay 6 laborers $40 each. Therefore, total variable cost for each coach was $300. Knowing that making a coach required spending $300, managers knew they couldn't sell below that price without losing money on each coach. Any price above $300 became a contribution to the fixed costs of the company. If the fixed costs were, say, $1000 per month for rent, insurance and owner's salary, the company could therefore sell 5 coaches per month for a total of $3000 (priced at $600 each), or 10 coaches for a total of $4500 (priced at $450 each), and make a profit of $500 in both cases.
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YES. From the IRS website:\n\nThe following are types of expenses that go into figuring the cost of goods sold.\n\n- The cost of product or raw materials, including the cost of having them shipped to you. \n- The cost of storing the products you sell. \n- Direct labor costs (including contributions to pensions or annuity plans) for workers who produce the products. \nFactory overhead expenses.
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When a service company sells its services to its clients, it has to use a benchmark rate to charge out.  \n\nThe staff will report how many hours they work, with different "billing rates" per hour depending on the experience/level of the staff and the difficulty of the project.  Alternatively, billing rate can be priced on a "per project" basis rather than hourly. \n\nLet's say you are going to install a server.  You will probably charge $x for the server plus labor at $y billing rate for the senior engineer and $z billing rate for his junior engineer (who holds his tool bag, picks up the dry cleaning and so on).
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The project cost is fixed capital plus an working capital cycle.The working capital cycle may be the operating cost required for an year/period.In project financing, the scale of finance is determined as the capitalised cost which include fixed assets plus the working capital required for an year or a stipulated period or whichever is appropriate
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You have not mentioned the type of organisation. Manufacturing or Marketing etc.\nFirst you must divide the organisation into various departments on some related basis.You also must have the data regarding the costs or expenditures incurred.\nCollection Classification comparison itself would reveal many things. \nIf manufacturing organisation you can determine the cost per unit of production ; and compare with various periods.\nWell This is not a forum to cover the entire gamut of cost vcontrol.
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Cost of sales in a service industry is the direct cost of revenue producing activities.  Typically these are direct sales costs/commissions.  Other expenses for administration are not considered cost of sales or costs of goods sold.\n\nCost of goods sold is similar to cost of sales.  It is the direct cost of the goods sold.  For example, a car dealership's cogs would be the car's cost to them.  Again, all direct sales costs/commissions are included as is the additional costs necessary to produce the inventory for sale.
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Margin \nThe boundary line or the area immediately inside the boundary\n(Or) The blank space that surrounds the text on a page\n(Or) A strip near the boundary of an object\n\nIt indicates something over and above something that is existing. \n\nSay you are already producing 1000 units of a product and your total cost is 50,000 (fixed cost 40,000 + variable cost @10/unit i.e. 10,000)\n\nNow if you are manufacturing one more unit of the product how much would be the total cost \nIt would be 50,010 (fixed cost 40,000 + variable cost 10,010)\n\nThis extra cost incurred is marginal cost.  \n\n"The extra cost incurred in manufacturing one more unit of a product" is marginal cost.\n\n"The extra revenue earned in selling one more unit of a product" is marginal revenue.\n\nYou can notice that marginal cost is nothing but variable cost per unit. The nature of variable cost is itself an indicator why marginal cost varies with production.  Variable cost varies with production implies marginal cost varies with production.  \n\n\nhttp://www.futureaccountant.com/process-costing/
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Check with the company your work for.  Normally, it involves listing your expenses like hotel, meals, transportation and entertainment costs.
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Process costing traces and accumulates direct costs, and allocates indirect costs, through a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production. Eventually, costs have to be allocated to individual units of product.\n\nWhy do we need to allocate total product costs to units of product? A company may manufacture thousands or millions of units of product in a given period of time. · products are manufactured in large quantities, but, · products must be sold in small quantities, sometimes one at a time (automobiles, loaves of bread), a dozen or two at a time (eggs, cookies), etc. · product costs must be transferred from Finished Goods to Cost of Goods Sold as sales are made. This requires a correct and accurate accounting of product costs per unit, to have a proper matching of product costs against related sales revenue. · managers need to maintain cost control over the manufacturing process. Process costing provides managers with feedback that can be used to compare similar product costs from one month to the next, keeping costs in line with projected manufacturing budgets. · a fraction-of-a-cent cost change can represent a large dollar change in overall profitability, when selling millions of units of product a month. Managers must carefully watch per unit costs on a daily basis through the production process, while at the same time dealing with materials and output in huge quantities. Materials part way through a process (e.g. chemicals) might need to be given a value, process costing allows for this. By determining what cost the part processed material has incurred such as labour or overhead an "equivalent unit" relative to the value of a finished process can be calculated.
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Production Planning is scheduling the fabrication/ manufacture and or production of products needed to met your customer's demands or your own warehouse demands (stock).This could also include scheduling of labor or materials. Material management would be more warehouse/inventory related. Raw materials (for manufacturing), finished goods (for your customers), handling inbound and outbound freight, materials on hand etc.
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Hmmm, sounds job specific. What context do you normally hear it in?\n\n\nProbably something to do with liabilities or expenditures...\n\ni.e. List of expendatures, Liabilities ans expenses, log of expendatures....something like that. I'm not sure though
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Reducing costs by making sure that every aspect of production in the company to be effiecent
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I am sitting P1 \nMy lecturer has told me that transfer pricing will be tested in section b.  there has also not beeen a Q. on process costing in section c for a while.  as long as you know the basics of:\nprocess costing\nabc\nmc\nac\nvariances\nannd bugets you sould be fine.
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BPO- Suppose we are producing a goods/services which contains several process., as we are not able to control the variables of each process in a large scale due to time, quality and cost of production for a particular or some process., we have to do that particular affected process done through other bpo companies which are established to serve these kind of jobs. this will result in quality - specialised and productivity- cost reduction.
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Cost of goods sold is defined as the actual cost that is directly incurred by manufacturing the good.\n\nThus, take:\nIncoming inventory + cost of goods created - ending inventory. The Manufacturing overhead is indirect, and is thus not counted.\n\n165,700 + 689,200 - 194,100 = $660,800 (solution!)
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The answer is a)production possibilities fontier, beacause opp. cost of an activity refers to  the next best alternative that means other possibilities....theres ur answer!!