26-07-2017, 08:30 PM
A good costing system is an involvable aid to management.”
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costing as an invaluable aid to management
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A good costing system is an involvable aid to management.”
29-07-2017, 12:50 PM
Costing can only involve the allocation of variable costs, which are costs that vary with some form of activity (such as sales or number of employees). This type of costing is called direct costing. For example, the cost of materials varies with the number of units produced, and therefore is a variable cost. The calculation of costs can also include the allocation of fixed costs, which are those that remain the same regardless of the level of activity. This type of costing is called absorption cost. Examples of fixed costs are rent, insurance, and property taxes.
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