Cost Accounting and Cost Management
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What are non-manufacturing costs or period costs?
Period Costs Period costs (nonmanufacturing costs) are expenses incurred to maintain business operations but are not required or vital to the manufacturing
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Purpose of Financial Accounting, Cost Accounting, GAAP, and IFRS
Purpose of Financial Accounting The primary purpose of financial accounting is to provide investors (for example, shareholders) or creditors (for example,
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Differences between management accounting and tax accounting
Financial accounting and reporting are only part of the broad field of accounting. Other significant kinds of accounting include management accounting and
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What is a sunk cost in accounting
A sunk cost is that which has been incurred or committed in the past and is, therefore, irrelevant to the decision-making purpose because the decision-make
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Differences between standard cost and standard costing
The standard cost is the amount anticipated to be paid for materials or labour. The standard quantity is the estimated amount of materials or labour used.
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Definition of Cost Object in Cost Accounting
Cost Object – Definition A cost object is anything for which a separate measurement of costs is desired. In other words, a cost object is a service u
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What is Contribution Margin? Meaning and Calculation
The contribution margin is the amount by which the selling price of a product exceeds its total variable unit costs. This difference between the selling pr
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What Are Perpetual and Periodic Stock Systems?
Stock Counting A trade or manufacturing company’s net stock position and the cost of stock issued over the year are often required to calculate the s
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What is the Budget Period in Accounting?
A budget is a quantitative future plan that helps an organisation coordinate its actions. Large organisations all have a budget. Numerous companies produce
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What are various types of sales variances in cost accounting
What is Sales Variance? Sales variance is the difference between the standard or expected revenue and the actual revenue. It is different from cost varianc
