Techniques of Costing
For controlling costs and making managerial decisions, the management uses the following costing techniques:
a) Historical (or Conventional) Costing
It refers to the process of determining costs after they have been incurred. The cost of a product can only be calculated after it has been manufactured. Costs can only be determined through this system, but costs cannot be controlled. Only if future conditions remain the same can it be used as a guide for future production.