Sample Essay

The job costing system is based on the different jobs in the manufacturing process according to the different orders. The material is traced which is put into each unit in the production process The job based costing system is not appropriate for the company as it is better suited to complex production process or when the company is manufacturing highly customized products. It is a costing technique where only variable cost or direct cost will be charged to the cost unit produced.

Marginal costing pertains to the type of costing system which focuses on the changes in the output by differentiating between the fixed and the variable costs. The direct costs are determined per the production functions while the fixed costs are not charged to production, while the variable costs are charged to the production processes. The limitations of the system pertain to the fact that the stock valuation according to this format is not accepted by Inland Revenue and the fixed costs which are not important to the production function are often ignored. Moreover this costing system does not have a long run perspective therefore it is not suitable to apply to the Excel Limited Company.

 These are model essays please place an order for custom essays, research papers, term papers, thesis, dissertation, case studies and book reports.