Cost Accounting
Cost accounting is a system of collecting, recording, and analyzing financial data to help managers make a decision about resource allocation.
-
What is Marginal Cost Equation | Practical Application
The marginal cost of an additional unit of output is often referred to as the “prime cost plus variable overhead.” It encompasses all costs that var
-
What is Activity-Based Costing (ABC)?
Activity-based costing is a method that assigns costs to the different activities involved in making a product to allocate a company’s funds equitabl
-
What is Idle Time in Cost Accounting
In cost accounting, idle time is when a production resource is available but not used. Idle time can occur for several reasons, such as when a production line i
-
What are various types of sales variances in cost accounting
Sales variance can be defined as the difference between the standard or expected revenue and the actual revenue. It is different from cost variances because cos
-
What is Sales Volume Variance? | Formula
Sales volume variance is an important concept in accounting and finance that helps businesses understand how their sales performance differs from their original
-
What is Material Cost Variance in Costing?
Material Cost Variance is the difference between the standard cost of the material allowed for the output and the actual cost of the material used. ICMS has def
-
What is Economic Order Quantity and Its Assumptions?
Economic Order Quantity (EOQ) is a formula used in inventory management to determine the optimal quantity of goods that should be ordered at one time. EOQ takes
-
What is Cost Accounting? Definition and Objectives
Cost Accounting is a term used in management accounting to track and analyze the costs incurred in the production process of goods or services. It involves coll
-
What is a Cost Plus Contract?
Cost plus contract, which is also known as a cost-reimbursement contract, pays a contractor for all permitted expenses up to a predetermined limit plus an addit
-
Marginal Costing and Absorption Costing difference
Absorption costing and marginal costing are two basic methods of cost accounting. Both the methods assist companies in ascertaining product costs, profitability