Module 02: Product Costing and Activity Based Costing
Methods of Product Costing
Broad Methods of Product Costing There are two broad methods of product costing: 1. Job Costing ...
Job Costing
1. Job as a Cost Object Definition: A job is treated as a cost object. All costs related to tha...
Customer Costing
1. Extension of Job Costing Definition: Customer costing extends job costing by pooling costs o...
Process Costing
1. Process Industries Definition: Firms producing identical products or services through a cont...
Treatment of Process Losses
1. Introduction Real‑world reality: Processes incur losses, wastage, defective units. Loss tim...
Joint and By-products Costing
1. Definitions & Context Joint Products: Two or more products of significant value emerging sim...
Indirect Cost
1. Definitions Direct Costs Traceable to a specific product Examples: wood, plywood, laminatio...
Method of Indirect Cost Allocation
1. Allocation Principle Cause & Effect: A product should absorb the cost of any department whos...