what is the difference between method of costing and technique
of costing
- 2 Answers
- 35605 Views
- I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
Methods of Costing - Used to ascertain the cost of output -
Final output of intermediary output (i.e. Product, Service,
Job, Contract, etc.) There are various methods of costing
such as - 1.Process Costing, 2.Job Costing, 3.Contract
Costing, 4.Service(Operations) Costing, 5.Batch Costing,
6.Multiple Costing (Combination of two or more of the above
methods in case of a complex production system.
Techniques of Costing - Used to control and reduce the cost
of output - Final output of intermediary output (i.e.
Product, Service, Job, Contract, etc.) There are various
techniques of costing such as - 1. Activity Based
Costing(ABC), 2.Marginal Costing, 3.Absorption Costing, 4.
Historical Costing, 5. Direct Costing 6. Standard Costing.
Different company's may use different methods or techniques
with variations to suit their industry or business & other
practical considerations. The whole purpose of
use/application of any costing method or technique is to
ascertain the output cost on regular basis and strive for
control and reduction of cost with out hampering the quality
of the product (It's endeavor of any company to improve the
quality & performance of their product/service on a
continuous basis)
For more info, refer Cost Accounting & Management Accounting
Books
| Is This Answer Correct ? | 54 Yes | 9 No |
Post New Answer View All Answers
Why company issue shares at discount as its a loss ?
SOLD GOODS WORTH 5000 TO AKBAR WHO PAID 3000 ON ACCOUNT
Purchase Goods worth rs.1000/ icluding vat of rs 40/ & Service charge receive 1000/ including service charge rs 123.60/ What will be entry in Tally? Please Define me?
What is the meaning of scrap value in accounting?
any one provide me mm & fi configration steps
What is icai?
can any one send me tally professional version link
My boss said to me "Calculate Tds for the month of may 2018 from bank statement". my Boss business is Proprietorship of Construction and designing work. How I can calculate Tds liability.
Explain me have you ever heard about tds, what it is?
service tax calculated on agreement value or market value whichver is higher for builders?
Define executive accounting?
What is dd and a in oil and gas accounting?
WHAT ABOUT YOUR SELF IN ACCOUNTING SYSTEM
What is meaning of invoice?
What does the word credit mean in terms of accounting?
