Details Flashcards
Which type of Costing?
Can be used to set minimum selling price
Marginal
Which type of Costing?
Complies with IAS 2 Inventory conntrol
Absorption
Which type of Costing?
Can be used for planning and control but little use for Decision Making
Absorption
Which type of Costing?
Can be used in conjunction with Break-Even analysis
Marginal
Which type of Costing?
Can be used in conjunction with ‘Full Cost Plus’ Pricing
Absorption
Which type of Costing?
Is ofter used in conjunction with Discounted Cash Flow (DCF) decision making techniques
Marginal
Which type of Costing?
A situation where a significant part of the overheads apply to some products and volumes vary
(eg private college with course prep costs applying to some courses and varying volume of students)
ABC
Which type of Costing?
A situation where it would be good to be able to set a minimum price eg. for a special order or selling late availability hotel rooms without incurring losses
Marginal
Which type of Costing?
A situation where there are large/small batches and it is important that unit costs are accurate
ABC
Which type of Costing?
A company dealing in big civil projects that are long term and where all the costs can be attributed to a specific project
Absorption
Which type of Costing?
A situation where there is a range of products where volumes are unpredictable and it’s important to have break even data
Marginal
Keywords to look out for when deciding if you are looking at :
Marginal Costing
- Special order pricing
- Last minute pricing
- Break even analysis
- Used with Discounted Cash Flow for Decison making
- Decision Making
Keywords to look out for when deciding if you are looking at :
ABC Costing
- Significant costs apply to some products not others
* Large and small batches
Keywords to look out for when deciding if you are looking at :
Absorption Costing
- Large civil projects
* Most costs are attributable to specific project
