Cost behavior refers to the manner in which a. a cost is used in setting selling prices b. a cost is estimated c. a cost is allocated to products d. a cost changes as the related activity changes Under variable costing, which of the following costs would not be included in finished goods inventory? a. direct labor cost b. fixed factory overhead cost c. direct materials cost d. variable factory overhead cost The following data relate to direct labor costs for February: Actual costs 7,700 hours at $14.00 Standard costs 7,000 hours at $16.00 What is the direct labor time variance? a. $7,700 favorable b. $11,200 unfavorable c. $11,200 favorable d. $7,700 unfavorable
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
| Actual costs | 7,700 hours at $14.00 |
| 7,000 hours at $16.00 |
What is the direct labor time variance?
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