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 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
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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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What Are the Limitations of Absorption Costing?
The term “absorption costing” refers to a method of inventory costing that treats all direct and indirect manufacturing costs as inventory costs. Th
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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 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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Basics of Cost and Costing in Management Accounting
Cost and costing are basic principles of management accounting, enabling companies to monitor expenses, determine prices, and optimize profitability. Cost is th
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How to calculate liquidity ratios?- With examples
The term liquidity refers to the ability of the firm to meet its obligations as and when due. The current liability of the company meets the realising amount fr
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What is a Perpetual Inventory System?
Businesses that use a perpetual inventory system maintain accurate records of the costs associated with each inventory acquisition and sale. These records show
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What are Direct Expenses in Costing? – Meaning and Examples
A direct expense is an expenditure that can be easily traced back to a specific cost centre within a company. Direct expenses are also known as chargeable expen
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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