Product Costing (Leaving Cert Accounting): Flashcards

Calculating total cost of producing goods or services

Costs identified with a specific product or department

Costs not directly traced, shared across all production

Remain constant regardless of production levels

Change in direct proportion to production volume

Contain both fixed and variable elements

Lower of cost or net realisable value

First in first out - first stock received is issued first

Includes direct & indirect costs in total product cost

Increases profit (actual costs lower than budgeted)