full costing method — full costs A method of costing a product or service that charges all the costs of an organization, both direct costs and overheads, to the cost unit. The full costing method usually takes the absorption approach to the costing of products and… … Accounting dictionary
basic costing method — The major costing method adopted by an organization … Accounting dictionary
Full Costing — A managerial accounting method that describes when all fixed and variable costs, including manufacturing costs, are used to compute the total cost per unit. Full costing includes these costs when computing the amount of money it takes to produce… … Investment dictionary
Process costing — is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month s production. Eventually … Wikipedia
marginal costing — direct costing; = variable costing A costing and decision making technique that charges only the marginal costs to the cost units and treats the fixed costs as a lump sum to be deducted from the total contribution, in obtaining the profit or loss … Accounting dictionary
activity based costing — ABC A costing method that uses an organization’s activities and operations to allocate costs to *products. In contrast to *absorption costing methodologies, which use production volumes as a *cost driver, activity based costing (ABC) uses… … Auditor's dictionary
absorption costing — A costing method that allocates all *manufacturing costs to *units of inventory or other measures of output. Normally required by most systems of *Generally Accepted Accounting Principles, absorption costing takes account of both *direct (or… … Auditor's dictionary
backflush costing — A costing method in which *costs are allocated to products when a manufacturing process is finished, or when a sale is made. Backflush costing is normally associated with *just in time (JIT) manufacturing and delivery practices, and it offers the … Auditor's dictionary
process costing — A costing method that uses an organization’s manufacturing *processes to allocate costs to *products. Typically used in the large scale production of identical items (e.g., in the chemicals industry), process costing uses activity levels in *cost … Auditor's dictionary
Average-Cost Method — A costing method by which the value of a pool of assets or expenses is assumed to be equal to the average cost of the assets or expenses in the pool. For example, if one share of Company A s stock is purchased on June 1 for $50.00, again on June… … Investment dictionary
Extended Normal Costing — In managerial accounting, a method of tracking production costs based on an approximation of the prices of the inputs multiplied by the actual quantity of inputs used. In normal costing, the actual prices are used for direct labor and direct… … Investment dictionary