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What is product costing?
Before you delve deep into the details of this chapter, it is a must that you understand what product costing is all about. Our Product Costing and Cost Accumulation assignment help services are designed to discuss these factors in details.
Product costing is the manufacturing cost that includes the costs of –
- Direct material
- Direct labour
- Manufacturing overhead.
Definition of cost accumulation:
Cost accumulation is a crucial part of cost management studies. It is an accounting system maintenance and collection procedure that holds a database for all costs of manufacturing or accumulation. There are two forms of cost accumulation and these are –
- A job order system:
In this case, collection of costs are related to an assigned number of jobs
- A process costing system:
Here, a particular cost centre maintains and associates all costs.
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Understand job order costing system:
In businesses or organizations, where products are manufactured either in small batches or individually, a system is used to distinguish each product from the other one. This system is called a job order costing system. At myhomeworkhelp.com, we discuss this in details through our Product Costing and Cost Accumulation assignment help services.
Accumulating Costs in Job Order Costing System:
In order to keep a record of every single costing, costs of actual direct labour and material as well as overhead manufacturing costs must be accumulated by triggering available documents. A number of factors are involved in this process and this includes –
- Supply chain
- Time records
- Manufacturing overhead
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