LearningCat: Costing Methods
Standard Costing
Businesses need tools to reduce costs, simplify processes, and evaluate performance in the unrelenting search of profitability. Still the pillar of financial planning and decision-making, standard costing is a century-old but timeless management accounting method. Setting benchmarks for expenses and examining variations helps companies to get practical understanding to maximize resources, increase effectiveness, and remain […]
Process Costing
The calculation of process costing of items produced will let the manufacturing companies analyze the production volume and costing to manufacture that product. On the other hand, considerations like the completion of the quantity of products and the quantity of in-process products at the end of an accounting period can impact the total cost a […]
Job Costing
Ever wonder how businesses track every penny spent on a job, especially when each project is different? Welcome to the world of Job Costing. This method is a game-changer, especially when companies need to understand exactly how much they’re spending on custom orders, projects, or services. Whether it’s a custom-built house or a special order […]
Activity-Based Costing
Companies in all kinds of sectors are under increasing pressure to maximize costs while providing value in the fast-paced business world of today, when accuracy and efficiency are non-negotiable. Often depending on broad assumptions, traditional costing techniques find it difficult to reflect the complexity of current manufacturing and service delivery. Now enter Activity-Based Costing (ABC), […]