Just in time (JIT) is a production strategy that focuses on delivering goods or services at the precise moment they are needed, without storing excess inventory. It aims to streamline operations, minimize waste, and optimize efficiency. Imagine you’re a toy…
What is a production plan? Production planning is the process of determining the most efficient and effective way to utilize resources and organize manufacturing activities to meet production goals. It involves analyzing various factors such as available resources, production capacity,…
What is process costing? Process costing is a method used by businesses to calculate the total production costs for a specific process or department within a company. It involves allocating costs to individual units of output based on the average…
What is job costing? It is a method of tracking the costs of a specific job or project to determine its total cost and profitability. It involves identifying and accumulating the costs associated with a particular job, such as materials,…
What is standard costing? Standard costing is a manufacturing accounting technique used by companies to establish predetermined costs for various resources, such as labor, materials, and overheads, involved in the production of goods or services. It starts with setting a…
Activity Based Costing (ABC) is a modern cost accounting system that provides a more accurate and detailed analysis of how costs are incurred within the organization. Traditional costing methods often allocate costs based on simple metrics like direct labor hours…
Manufacturing accounting is the branch of accounting that deals with the financial management and control of manufacturing operations. It involves the collection, recording, analysis, and reporting of financial data related to the efficient production of goods. Manufacturing accounting focuses on…