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 Economic Batch Quantity? With Example
Economic batch quantity (EBQ) is a crucial concept that determines the most cost-effective quantity of units to produce in a single batch or production run. By
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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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How to Calculate Profit or Loss on Incomplete Contracts?
The profit or loss on incomplete contracts in cost accounting can be calculated using the percentage of completion method. This method recognizes profit or loss
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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
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What is a Production Budget and Its Components?
A production budget is a financial plan that outlines the estimated costs associated with creating and delivering a product or service. The production budget se
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Difference between Spoilage and Defectives in Cost Accounting
In cost accounting, spoilage and defectives refer to different types of quality issues that arise during the production process. While both terms indicate a dev
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A Short Note on the LIFO Method of Inventory Valuation
The LIFO method, or last-in, first-out, is one of the most popular and widely used inventory valuation methods in cost accounting. Under this approach, the cost
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What is meant by annual holding cost in costing?
Annual holding cost, also known as carrying cost or holding cost, refers to the expenses incurred by a company for holding and storing inventory over a specific
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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
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What is the FIFO Method of Inventory Control
Inventory control is a crucial aspect of any business that involves selling products. It ensures that the right amount of stock is available at the right time a