What are the 16 methods of costing. Explain with suitable example?

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16 Methods of Costing

Job Costing: This method is used when goods are made to order or in small batches. For example, a custom furniture maker would use job costing to determine the cost of each specific piece of furniture.
Batch Costing: Batch costing is utilized when a group of products is manufactured together. An example would be a bakery producing a batch of cakes at once.
Contract Costing: This method is used in industries like construction, where costs are accumulated for specific contracts. For instance, a construction company would use contract costing to determine the costs associated with building a particular structure.
Process Costing: Process costing is employed when goods are produced continuously in a series of uniform processes. An example would be a chemical manufacturing plant producing a specific product.
Operating Costing: This method is used in service industries to determine the cost of providing a specific service. For example, a consulting firm would use operating costing to calculate the cost of providing consulting services to clients.
Unit Costing: Unit costing is used when a single, standard unit of output is produced. For example, a company producing a standardized product like pencils would use unit costing.
Activity-Based Costing (ABC): ABC assigns costs to activities based on their use of resources. This method is useful in identifying the costs associated with specific activities within an organization.
Marginal Costing: Marginal costing focuses on variable costs and contribution margin to determine the profitability of products. It helps in making decisions related to pricing and production.
Life Cycle Costing: Life cycle costing considers the total cost of a product over its entire life cycle, from production to disposal. This method helps in evaluating the long-term costs associated with a product.
Standard Costing: Standard costing involves setting standard costs for materials, labor, and overheads. It helps in comparing actual costs with standard costs to identify variances and improve cost control.
Target Costing: Target costing involves setting a target cost for a product based on market conditions and desired profit margins. It helps in designing products that meet customer expectations while maintaining profitability.
Kaizen Costing: Kaizen costing focuses on continuous improvement in cost reduction through small, incremental changes. It involves employees at all levels in identifying and implementing cost-saving measures.
Lean Accounting: Lean accounting aligns financial reporting with the principles of lean manufacturing to eliminate waste and improve efficiency. It helps in providing accurate and timely financial information for decision-making.
Resource Consumption Accounting (RCA): RCA focuses on linking costs to the consumption of resources by activities. It helps in understanding the cost drivers and optimizing resource utilization.
Throughput Accounting: Throughput accounting focuses on maximizing throughput

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