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In such a case, the decision has to be taken on the basis of unit service cost, when the total units remain constant under different alternatives, but if units are subject to fluctuation from alternative to alternative, decision will be on the basis of total service cost, i.
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Which is the best essay on process costing?
Essay # 1. Concept of Process Costing: Process costing is such a separate method of costing which refers to a costing of operations or process involved in converting raw material into finished goods or products. It is suitable for those types of business where continuous and mass production of homogeneous products is produced.
How does activity based costing ( ABC ) help in cost analysis?
ABC technique gives visibility to costs by detailing the organisation’s activities, their interrelationship and their respective costs. It categorises all inputs by the way in which they are consumed and that leads to an analysis focusing on cost reduction opportunities. Essay # 2. ABC Proper:
How are cost estimates used in cost management?
For control and monitoring purpose, the original detailed cost estimate is typically converted to a project budget and the it is subsequently used as a guide for management. Those specific item stated in the detailed cost estimate become job cost element.
How are cost accounting methods used in construction?
During construction, cost accounting methods are applied to obtain the actual production rates and costs as they occur. This management by exception cost system immediately identify for the project manager where production costs are unsatisfactory and management action is needed.
Last Update: Oct 2021
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