Traditional Manufacturing Costing System Homework Help
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Manufacturing systems are the processes applied in a production sector to raw materials in order to achieve a final product that can be sold in market to achieve monetary benefits. But a track record of all the expenses over the manufacturing process and raw materials is necessary to keep for assigning cost to the final product and set a profit margin. There have been discovered many efficient methods like activity based costing and traditional costing methods to fulfil the purpose. In this article for traditional manufacturing costing system homework help we discuss about assigning overhead costs to the products manufactured.
Traditional Method Used in Cost Accounting
as mentioned above in the traditional manufacturing costing system homework help article, the method of assigning manufacturing overhead costs to the final product is called traditional method. It is also called as a conventional method, that is used to allocate the company’s indirect costs to the product manufactured so that they can be compensated. It is done, as per our traditional manufacturing costing system homework help writers, on the basis of volume or number of units produced.
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Potential for Inaccuracies
There are a lot of unexpected expenses that take place during a manufacturing process. The estimation of profit gets impacted by such activities. The total cost in the production of a product goes beyond the expected value of it and hence in this method of costing the company can face a loss. Still it is widely used, the traditional method, as per our traditional manufacturing costing system homework help article, because it is simple in operation and there are no complicated calculation parts.
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