Tag Archives | Product Costing

Product Costing Methods: Top 3 Methods | Cost Accounting

Product costing methods may be grouped under the following three main categories: 1. Specific Order Costing  2. Continuous Operation/Process Costing 3. Service/Function Costing. Method # 1. Specific Order Costing: Specific order costing method is the basic costing method applicable where work consists of separate contracts, jobs, or batches, each of which is authorized by a special order or contract. Thus, specific [...]

By |2018-05-16T07:31:19+00:00May 16, 2018|Product Costing|Comments Off on Product Costing Methods: Top 3 Methods | Cost Accounting

How to Calculate Joint Product Costs? | Cost Accounting

Joint products are of equal importance in terms of sale value and profits. Therefore, they are treated as main products. They cannot be separated until the process has reached a certain stage of completion. Apportionment of costs incurred up to the split-off point (joint costs) is arbitrary and has the limited purpose of determining the cost of stock of each [...]

By |2018-05-16T07:31:19+00:00May 16, 2018|Product Costing|Comments Off on How to Calculate Joint Product Costs? | Cost Accounting
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