Cost Accounting and Cost Management
What is Cost Accounting? Definition and Objectives
Cost Accounting is used to measure, analyse and control the costs of products and services a business provides. Cost accounting is the discipline of prepar
Pros and Cons of the Traditional Method of Calculating Overhead
Traditional Method of Calculating Overhead The traditional allocation system assigns manufacturing overhead based on a single cost driver, such as direct l
What is the Margin of Safety? Margin of Safety Formula
The margin of safety is the difference between actual sales and the point at which a business breaks even. The margin of safety indicates how much a compan
Job Order Costing versus Process Costing
Job Order Costing Job order costing is a form of accounting that attributes individual costs directly to a completed job or service rather than to the manu
What is Labour Efficiency Variance? Meaning and Example
Labour Efficiency Variance is also known as Labour Time Variance. It is that portion of the Labour Cost Variance which arises due to the difference between
What is Process costing? Pros and Cons of process costing
The process is a series of stages that must be followed in order to finish a given task. The method of preserving cost records for each procedure is referr
What is ABC analysis? Benefits and Drawbacks of ABC Analysis
ABC Analysis ABC analysis is a method for classifying materials based on the quantity consumed and their relative values. Also referred to as “Select
What are Flexible Budget and Flexible Budget Variance?
A budget is a future-oriented strategy. Therefore, budgets are planning tools, and they are often produced prior to the beginning of the budgeted period. H
What are the Fixed Costs in Management Accounting?
Meaning of Fixed Costs Fixed costs are expenses that remain constant regardless of changes in sales or production levels. This is due to the fact that they
What is Performance Budgeting?
Performance Budgeting The process of performance budgeting entails evaluating an organization’s performance within the context of the organization