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 Cost Centre in Costing?
Cost centres refer to specific divisions, departments, and areas, that are responsible for managing their own expenses and can have costs assigned to them. In c
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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 (MoS) refers to the difference between the actual/target output and the break-even level of output/quantity. The margin of safety (MOS) rat
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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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Meaning, 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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Meaning, Benefits and Drawbacks of ABC Analysis
ABC analysis is a widely used inventory management technique that categorizes inventory into three groups: A, B, and C, based on relative importance. This metho
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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