What Are The Various Methods For Calculating The Cost?

1.	What Are The Various Methods For Calculating The Cost?
Answer» There are two methods for calculating the cost: JOB-Order Cost Method: This method is used when ORDERS are placed in the factory for specific jobs or lots of product, which can be identified through all manufacturing processes, a job cost system is appropriate. PROCESS Cost Method: This product is used when production proceeds in a continuous flow, when units of product are not separately IDENTIFIABLE, and when there are no specific jobs or lots of product, a process cost system is appropriate. There are two methods for calculating the cost:

Answer»

There are two methods for calculating the cost:

JOB-Order Cost Method: This method is used when ORDERS are placed in the factory for specific jobs or lots of product, which can be identified through all manufacturing processes, a job cost system is appropriate.
PROCESS Cost Method: This product is used when production proceeds in a continuous flow, when units of product are not separately IDENTIFIABLE, and when there are no specific jobs or lots of product, a process cost system is appropriate.

There are two methods for calculating the cost:

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