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Cost Accounting System

Cost Accumulation Job-order costing Costs accumulated by jobs

OH assignment Volume-based Predetermined OH rate

Inventory valuation Absorption DM + DL + VOH + FOH/Traditional IS

Cost measurement Actual A, A, and A

Cost flow assumption Weighted-average

Process costing Costs accumulated by processes

Activity-based OH rate for each activity

Variable DM + DL + VOH/CM IS

Normal A, A, and Applied (AH*POHR)

FIFO

Operation costing Used where products have some common characteristics and some individual characteristics.

Standard S, S, and S (SH*POHR)

LIFO

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