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Cost System?

alex

Posted 01 October 2006 - 09:09 PM

Anyone know what a cost system is?
its part of my homework ahhh!

ermd

Posted 03 October 2006 - 09:21 PM

My memory is hazy on this, but isn't that where you take your inputs and processes and just show how the basic cost of raw input is then added to by the cost of processing it and then the final output value (not price, but value) is achieved? Basically a way of showing how much it costs to produce each unit of a good.

I think when we did it we were taught to lay it out in the old two-column style of accounting too. Can't remember why though.

alex

Posted 04 October 2006 - 06:16 PM

thanks

Discogirl17

Posted 06 October 2006 - 08:00 PM

Omg help, I'm doing accounting at uni and I didnt even know that. I thought that what ermdeviation described was job costing and that a cost system was something completely different. What's job costing then?

alex

Posted 06 October 2006 - 08:41 PM

ok, ill ask my teacher on monday to give me a description for both. which uni are you studying at? and whats the accounting course like?its what i want to do at uni.

ermd

Posted 08 October 2006 - 12:48 PM

QUOTE(Discogirl17 @ Oct 6 2006, 09:00 PM) View Post

Omg help, I'm doing accounting at uni and I didnt even know that. I thought that what ermdeviation described was job costing and that a cost system was something completely different. What's job costing then?


Job costing is when you add together all the elements of a "job".

Errr, for example a builder will give you a "quote" for a job by adding together the materials they'll need, manpower etc. That gets them a cost - they then add their required profit on top of that. I think.

The other system I described is just taking raw materials and adding the cost of processing them to produce a basic good.

Of course, this might all be wrong because I've not studied accounting in a couple of years.

Discogirl17

Posted 08 October 2006 - 10:37 PM

O so a cost system is a "process costing". I understand now.

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