Depending on the nature of the product/production process, management chooses among costing methods that differ in the extent of product cost definition. All manufacturing related factors are considered as part of product cost within the scope of the most extensive method, whereas the definition of the product cost includes only the cost of direct materials used, in the least extensive one. 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