costing methods


costing methods
The techniques and procedures used in cost accounting and management accounting to obtain the costs of services, products, processes, and cost centres to provide the information required to undertake performance measures, decision making, planning, and control. These techniques include absorption costing, activity-based costing, marginal costing, and process costing

Accounting dictionary. 2014.

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  • traditional costing system — Any of the systematic costing methods that prevailed before the rise of activity based costing in the 1990s. Because they rely on an essentially arbitrary allocation of indirect costs, such systems do not give managers accurate product cost… …   Accounting dictionary

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  • accounting — /euh kown ting/, n. 1. the theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc.… …   Universalium

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  • product costs — The costs of production when charged to the cost units and expressed as costs of individual products. Product costs may include both direct costs and indirect costs (overhead); many different costing methods, such as absorption costing, activity… …   Accounting dictionary

  • product costs — The costs of production when charged to the cost units and expressed as costs of individual products. Product costs may include both direct costs and indirect costs (overhead); many different costing methods, such as absorption costing, activity… …   Big dictionary of business and management