Cost Accumulation Systems

What is process costing?

* used where a company produces many units of a single product for long periods at a time
* accumulate costs for an entire period and divide by the number of units produced during the period
* broad, average unit cost figure that applies to homogenous units

What are lifecycle costs?

* Lifecycle costing is a technique which requires the full environmental consequences and therefore costs arising from production of a product to be taken account across its whole lifecycle, “from cradle to grave”

What are features of job costing?

* For unique jobs (services/build to order)
* need to collect cost information for each job for pricing purposes
* examples; dental practice, construction, car repairs

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