Costing Method

They are not following any costing method like job order costing method and process costing
method. They use their own method.

Everyday many customer buys their product. When they sell any product they just record it. At
the end of the day they add up the recorded, from here deduct the cost, then calculate how much
profit they earned that day.

At the end of the month, they add up the amount of profit which they have earned during the
whole month. From here they just deduct the monthly expense like electricity, rent and other
expenses. They don’t create any annual report for their business.