Costing systems

Free IMA CMA Part 1 (Financial Planning, Performance, and Analytics) lesson in Cost Management. 13 min read, ~1,892 words.

Job-order costing tracks costs to unique jobs; process costing averages costs across identical units; operation costing is the hybrid. Normal spoilage is a product cost loaded into good units; abnormal spoilage is a period loss hitting the income statement directly. Equivalent units convert partially complete WIP into whole-unit equivalents; weighted...