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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What is Material Mix Variance? Meaning and Treatment
Material mix variance is a measure of the deviation in the usage of different materials from standard or expected usage. In other words, material Mix Variance m
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What is Throughput Costing? When to Choose it?
Throughput costing is a system based on the fact that most production costs will not vary at the level of the individual unit produced. Throughput costing, also
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Target Costing and Lifecycle Costing Explained
Target Costing and Lifecycle Costing are two important tools that can be used to manage and control costs throughout the product development process. Target cos
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What is Cost Tracing – Meaning, Purpose and Challenges
Cost tracing is an important part of cost estimation. It allows us to compare costs for a given product between different cost centres. In order to do this, we
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Meaning and Explanation of Service Costing
The term “service costing” refers to the method of calculating the cost per unit of service given. It also refers to the price of particular functio
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What is Production Volume Variance?
Production volume variance is a measure of the difference between the actual cost of producing a certain number of units of output and the budgeted cost of prod
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What is the FIFO Method of Inventory Control
The FIFO or First-In, First-Out inventory method is probably one of the most popular used by companies to manage their stocks. It lies on the rationale that the
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What is Process Value Analysis? Meaning and Importance
Process value analysis is a systematic approach to identify, analyse and improve the value of specific processes within an organisation. Process Value Analysis&
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What is Direct Labour in Cost Accounting?
Direct labour is the cost of the labour used to produce a product or service. It includes all wages, salaries, and other forms of employee compensation, such as
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What are the Different Types of Cost Audit?
A cost audit is an independent examination of an organization’s cost accounting records and procedures. It is used to ensure that the organization is foll