Topic 2- Cost Concepts and Terminology Flashcards
1
Q
What is the importance of product unit cost in managerial decision making?
A
pricing of product
allocation of limited resources
cost control
2
Q
What are the two costing systems?
A
actual cost
normal costing
3
Q
What is the advantage of an actual costing?
A
information is accurate
4
Q
What is the disadvantage of an actual costing?
A
information available only at end of accounting period
cannot supply cost information on a timely basis
5
Q
What is the advantage of normal costing?
A
supplies unit cost information in a timely way
6
Q
What is the disadvantage of normal costing?What
A
estimates differ from actual
7
Q
What are teh types of production processes?
A
assembly line mass customisation batch continuous job shop
