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 a Budget Manual? – Meaning and definition
A budget manual outlines the policies, procedures, timelines, and responsibilities related to the budgeting process within an organisation. It serves as a refer
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What is the Margin of Safety? Margin of Safety Formula
The Margin of Safety (MoS) refers to the difference between the actual/target output and the break-even level of output/quantity. The margin of safety (MOS) rat
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What is the Importance of Overhead Costs
Overhead costs are expenses incurred during the production of a product or the operation of a department but cannot be directly attributed to the product or dep
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What is Abnormal Loss in Cost Accounting?
An abnormal loss is a cost accounting term that refers to a situation where the expected output of a production process is not achieved due to factors beyond th
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Differences between standard cost and standard costing
The standard cost is the amount anticipated to be paid for materials or labour. The standard quantity is the estimated amount of materials or labour used. It is
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What is variance analysis and its usefulness?
Variance refers to the difference between the standard and actual variables. For example, you can calculate the selling price variance to find the difference be
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Comparison between Standard Costing and Budgetary Control
Standard costing and budgetary control are two commonly used tools in the field of cost management. These methods play a significant role in helping organizatio
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What Are Direct Material Cost Variances?
Direct material cost variance refers to the difference between direct materials’ actual and standard costs. It is calculated using actual output. Direct m
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Integrated Accounting System of Cost Accounting
Integrated accounting is defined by the Chartered Institute of Management Accountants (CIMA) as “a collection of accounting records that offers financial
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Cost Accounting Quiz Challenge
1. What is the primary objective of cost accounting? a) Maximizing profits b) Reducing costs c) Providing financial reports d) Facilitating decision-making 2. W