Cost Accounting
Cost accounting is a system of collecting, recording, and analyzing financial data to help managers make a decision about where and how to allocate resources
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What is a Cost Centre in Costing?
A cost centre is a department or function within an organisation for which costs are incurred. Cost centres are typically grouped together by function, such as
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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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What is Cost Accounting? Definition and Objectives
Cost Accounting is a term used in management accounting to track and analyze the costs incurred in the production process of goods or services. It involves coll
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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 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 (MOS) ratio equals the differenc
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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 manufactu
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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 the
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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 referred to
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What is ABC analysis? Benefits and Drawbacks of ABC Analysis
ABC analysis is a method for classifying materials based on the quantity consumed and their relative values. This method helps businesses prioritize their inven
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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. Howeve
