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 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 is Direct Labour Cost Variance
Direct labour cost variance refers to the standard cost of direct labour for the actual number of units produced less the actual cost. A total variance might ha
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What are the Advantages of Cost Audit?
A cost Audit is an important part of a company’s financial and risk management. The main purpose of this cost audit is to help the company to save money by fixi
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What are the Objectives of Target Costing?
Target Costing is a strategic pricing technique used by businesses in which the desired selling price of a product is set, and then the costs associated with ma
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What Are the Assumptions and Limitations of CVP Analysis?
Cost-Volume-Profit (CVP) analysis is a method for assessing the links between selling prices, total sales revenue, and the volume of production, expenses, and p
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What is Labour Turnover in Cost Accounting?
Labour turnover is a crucial metric in cost accounting that measures the rate at which employees leave a company and are replaced by new employees. A high rate
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Pros and Cons of the Traditional Method of Calculating Overhead
Calculating overhead is an essential part of determining the true cost of goods and services in a business. Overhead costs are indirect costs, such as rent, uti
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What is Reorder Level in Cost Accounting?
Introduction Cost accounting is essential for businesses to understand their costs and make informed decisions. One of the key concepts in cost accounting is th
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What is unit cost and how to compute unit costs?
Unit Cost The unit cost (also known as unit price) of output (production) is an estimation of the total cost required to produce the output. The unit cost of th
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What is Job Costing? Advantages and Disadvantages
Job costing is a cost accounting system that allocates the costs of producing a good or service to the particular products and services of the company that crea