Types of absolute dating techniques


19-Sep-2017 19:42

A single manufacturer may use both process and job-order costing for different parts of its operations.Activity-based costing(ABC) is a secondary and somewhat complementary (or better, supplementary) method to the two traditional costing techniques.By tracking and categorizing this information according to a rigorous accounting system, corporate management can determine with a high degree of accuracy the cost per unit of production and other key performance indicators.Management needs this information in order to make informed decisions about production levels, pricing, competitive strategy, future investment, and a host of other concerns.For example, to accurately determine unit costs, it was necessary to relate overhead costs and capital depreciation to the volume of production. in the 20th century, financial, capital, and cost accounting operations were carried out in relative autonomy within firms.At the same time, unit costs were typically used to determine prices, which in turn affected financial accounts. Cost accounting was first used by the Louisville & Nashville Railroad in the late 1860s.Such information is primarily necessary for internal use, or managerial accounting.

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Since most manufacturing processes involve more than one step, a similar calculation is made for each step to arrive at a unit cost average for the entire production system.

Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co.



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