Comparison of Managerial Accounting Techniques

COSTING ESSAY

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................3
Comparison and contrast differences types of managerial accounting techniques..........................3
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
Costing is branch of accounting which is used by personal to recognize cost of each process
of running their business activity. This report has been formulated to difference various methods
used by cost accountant through which they can calculate or measure cost required for operating
business. This report also differentiate and compare job order costing, process, marginal and target
costing in systematic way.
MAIN BODY
Comparison and contrast differences types of managerial accounting techniques.
Costing: This term is define as tool or systematic procedure which help in determine cost of
each business operation. There are various methods which use by cost accountant for calculate and
allocate theses cost on the basis of requirement of departments. Following are methods which
define below:
Job order costing: In this type of costing method, cost are assign according to each job work as
each job is order according to specific requirement of customer. This method useful to determine
value of per unit cost required to fulfilled demand of customers (Bataineh, 2018).
The Toy Limited had the following stock list on
April 1, 2020:
Direct Material 500000
Finished Goods 280000
Work in progress – Material 20000
Work in progress- Labour 30000
Work in progress - Fixed overhead 12000
Cost of purchasing material = 1200000
Labour cost = 160000
Applicability of factory overhead was 60000, as
on 30 April
Direct Material 460000
Finished Goods 440000
Work in progress – Material 100000