Archive about 'Other Costing Techniques'

In Managerial Accounting, explain what are the benefits of using product life cycle costing methodology or approach? (Part 4 of 4)

Tweet BENEFITS FROM USING PRODUCT LIFE CYCLE COSTING Some of the following benefits of using product life cycle costing are: it results in earlier actions to generate revenue or to lower cost than otherwise might be considered better decision should follow from a more accurate and realistc assessment of revenues and costs, at least within […]

Explain briefly what are the stages or procedures or steps involved in product life cycle costing. (Part 3 of 4)

Tweet STAGES/STEPS/PROCEDURES¬†OF PRODUCT LIFE CYCLE COSTING Below are the steps/stages/procedures involved in product life cycle : market research-identifies the products which the customers want, how much they are prepared to pay for it and how much quantity they intend buy specification-provides detais such as required life, maximum permissible maintenance costs, manufacturing costs units required, delivery […]

Describe the nature or characteristics of product life cycle costing? (Part 2 of 4)

Tweet CHARACTERISICS OF PRODUCT LIFE CYCLE COSTING The main characteristics of product life cycle costing comprises: tracing of costs and revenues of each product over the several calendar periods throughout their entire life cycle traces research and design and development costs and total magnitude of these costs for each individual product and compared with product […]

What Is Product Life Cycle Costing ? (Part 1 of 4)

Tweet WHAT IS PRODUCT LIFE CYCLE COSTING? Product life cycle costing is a costing methodology or approach enabling the user to understand a long term picture of the life of a product in terms of: profitability; feedback on the effectiveness of life cycle planning and cost data to clarify the economic impact of alternatives chosen […]

In Cost Accounting, explain what is waste, scrap,spoilage,obsolescence,rejects and stock losses

Tweet This article seeks to define waste, scrap, spoilage, obsolescence, rejects and stock losses. Irrespective of the nature, Management needs to keep tight control over waste, scrap, spoilage, obsolescence, rejects and stock losses through specific control reports. Generally, normal losses will be charged to the cost of production and abnormal losses will then charge into […]

Costing Techniques: Difference Between Job Costing And Process Costing

Tweet This article discusses the two important costing techniques used in the manufacturing environment for product costing which are Job and Process Costing. Let’s start with Job costing: which deals with the cost determination of orders or jobs. it is suitable in a production environment where each new order is different from the earlier or […]