MALİYET VE YÖNETİM MUHASEBESİ

The costing methods by the scope of product cost coverage are;
• Full Costing Method
• Normal Costing Method
• Variable Costing Method
• Direct Costing Method
• Throughput Costing Method

In full costing method, expenditures for all manufacturing related factors are included in the
product cost. Direct materials cost, direct labor cost, and manufacturing overhead costs are all included in the product cost with their total lump sum amount.

In normal costing method costs of indirect manufacturing factors are allocated to products depending on the utilization rates of these factors.

Within the scope of variable costing method, all fixed costs are considered as period expenses, suggesting that fixed costs would still exist even if there were no production and this makes those factors irrelevant for calculating the manufacturing cost.

Direct costing method accepts only direct costs (direct materials cost and direct labor cost) as the product cost and all indirect costs are treated as period expenses. The sum of direct materials cost and direct labor cost is also called as prime cost.

Under throughput costing method, only the direct material cost is the product cost, while all other manufacturing related expenditures are considered as period expenses to be reported in the income
statement.

Throughput costing method is also called as super variable costing

In standard costing method, costs of all manufacturing factors (direct materials, direct labor and manufacturing overhead) are based on the standards that are previously determined using scientific techniques and methods. Thus, product cost is already known at the beginning of the year.

In actual costing method, product cost is
calculated at year-end by using the cost data that
incurred during the year.

Fundamentally, there are two main costing systems that differ in costing approach:
• Job Costing
• Process Costing