Cost Accounting
Cost accounting is a system of collecting, recording, and analyzing financial data to help managers make a decision about resource allocation.
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Differences Between Traditional Costing and Target Costing
Cost management plays a decisive role in determining profitability, pricing strategy, and long-term competitiveness. Organisations rely on costing methods not o
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Roles and Functions of Management Accountants
The role of management accountants has evolved over the years from being solely focused on cost accounting to including a range of functions such as budgeting,
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What is Segment Contribution Margin
The segment contribution margin indicates how much each business segment generates in revenues after meeting variable costs attributable to each segment. This m
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Why do variances arise in costing?
Variance in cost accounting is the difference between the actual cost of something and the expected cost of something. For example, a direct material cost varia
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What is Labour Efficiency Variance? Meaning and Example
Labour Efficiency Variance is also known as Labour Time Variance. It is that portion of the Labour Cost Variance which arises due to the difference between the
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Evaluation of Transfer Pricing Policies
Transfer pricing refers to the setting of prices for goods sold between different entities within the same company, often located in different countries. It is
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Direct Materials- Meaning and Examples
Direct Materials are those materials that can be identified in the product, measured and directly charged to the product to the product. Thus, these materials d
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What is Fixed Overhead Volume Variance?
The fixed overhead volume variance is also referred to as the production volume variation because this variance is dependent on production volume. The volume va
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What is Contribution Margin? Meaning and Calculation
The contribution margin can be defined as the amount by which the selling price of a product exceeds its total variable unit costs. This difference between the
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What Are Stock Control Cards – Pros and Cons Explained
Stock control is a critical function of inventory management, allowing businesses to hold the necessary amount of stock to satisfy demand without excess stock o