Accounting Techniques For The Manufacturing Process Essay

Question 1: A. Manufacturing costing systems refer to the accounting techniques used to recognise and record the inputs and outputs values in the manufacturing process (K. Langfield-Smith, Thorne, Hilton, 2009). Job-order costing is about to obtain all costs involved in the basis of individual products. It needs to obtain the exact costs involved in the manufacturing process of a particular unit. This needs to obtain costs incurred for every unit such as materials costs, labour, and manufacturing overhead. Process costing refers to a manufacturing costing system that measure and record the net costs involved in a production process in terms of recording and adding up all direct costs and assigning indirect costs of the production process (K. Langfield-Smith, Thorne, Hilton, 2012). As majority of production processes include more than one step, similar measurements are made for each step in order to get the average unit cost for the overall manufacturing system (K. Langfield-Smith et al., 2009). It needs to obtain direct costs of a manufacturing system such as costs of materials. It also needs to obtain indirect costs that are not directly accountable to the production such as labour and directors salary. Activity-based costing refers to a costing system that initially identifies activities and assigns costs incurred in a single manufacturing task (Gunasekaran A, Marri, H. B, Yusuf, Y.Y, 1999). This, therefore, allocates costs and overheads to items thatShow MoreRelatedIssues of Managerial Accounting1047 Words   |  5 PagesINTRODUCTION : Managerial accounting is concerned with providing information to managers – that is , people inside an organization who direct or control it’s operations. Via managerial accounting managers understood that good business results come from dynamic processes , procedures and practices that are well designed and properly implemented and managed. 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