costing


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costing

the process of ascertaining the cost of a PRODUCT, COMPONENT or SERVICE. With historical costing, costs are ascertained after they have been incurred, though most businesses seek to gauge future costs through STANDARD COSTING.

Product costing seeks to determine the cost of each job or batch of products in order to assess the cost per unit. Contract costing is used to determine the construction costs of a large-scale building or civil engineering contract. Process costing is used where liquid or gaseous materials such as oil pass through several refining/heating processes to produce products such as petrol and by-products such as tar, and seeks to determine the costs of products by dividing output volume by materials and processing costs.

References in periodicals archive ?
Because today's accounting systems are much more sophisticated, "the weight accorded to the costs incurred in prior years is so slight that the ending inventory cost more nearly approximates first in, first out (FIFO)." In addition, because there is an increasing number of inventory costing systems that use a rolling average cost, a continuation of the ban puts taxpayers at risk.
While the principles of reliable, activity-based costing are universally applicable, costing system implementation must satisfy the unique characteristics and managerial needs of the foundry industry.
3) An ideal approach, but one that is difficult to accomplish, is called "activity-based costing." This involves costing out the various activities that go into a patient's or group of patients' care - for example, the cost of assessment and of the therapies used.
The packages listed here are all stand-alone costing and quoting applications - as opposed to full-blown MRP II systems, which capture all sorts of data essential to understanding manufacturing cost structures.
In the mid-1980s, Wetaskiwin Hospital was selected as the Alberta test site for the implementation of new national guidelines2 for the collection and reporting of resource utilization and costing information.
Put another way, as important as the survey is, the demands placed on companies by the tax system "as it is today" took precedence over their efforts to estimate the costs and demands of the tax system "as it might be tomorrow." This is not to denigrate the IRS's effort to secure accurate "costing" information, but simply to explain why the response rate to the survey was not as high as the IRS (and the Institute) would have liked.
The concept of separating purchased and produced goods for LIFO pooling purposes is based on differences in the costing configuration, which might distort income.
Special note: If your mill runs colors, average costing is especially dangerous.
For instance, if a fully burdened backup and restore environment is currently costing $12-$14 per GB internally to manage, a 40 percent reduction in this item alone could reduce management costs by S5-$6 per GB, per month.
Pabla in Estimating and Costing for the Metal Manufacturing Industries, published in 1992.