MA

PROCESS COSTING

PROCESS COSTING

In entities mass production involving, it is difficult to calculate on base of individual units, so to make issues simple costs are accounted  making processes or departments as base. Let suppose a  product is transformed in final shape after passing three departments A,B,C. materials , labor  and FOH are will be accounted for department A, …

PROCESS COSTING Read More »

Marginal and Absorption Costing Methods

Marginal and Absorption Costing Methods

Marginal and Absorption Costing Methods The main difference between marginal costing and absorption costing is that Under Marginal costing all the fixed cost is treated as period cost whereas under Absorption costing the fixed cost is treated as product cost.   Marginal Costing Absorption Costing   Direct Material + Direct Labor + Variable FOH   …

Marginal and Absorption Costing Methods Read More »