Cost Accounting
Cost accounting is a system of collecting, recording, and analyzing financial data to help managers make a decision about resource allocation.
-
Fixed Overhead Variances in Cost Accounting
Fixed overhead variance refers to the difference between the actual fixed production overheads and the absorbed fixed production overheads over a period of time
-
What Are the Assumptions and Limitations of CVP Analysis?
Cost-Volume-Profit (CVP) analysis is a method for assessing the links between selling prices, total sales revenue, and the volume of production, expenses, and p
-
What are non-manufacturing costs or period costs?
Period Costs Period costs, also referred to as nonmanufacturing costs, are expenses that a business incurs to maintain its operations but are not directly assoc
-
Purpose of Financial Accounting, Cost Accounting, GAAP, and IFRS
Purpose of Financial Accounting 1. Providing information to investors and creditors: Financial accounting provides investors and creditors with information abou
-
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-maker no
-
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. It is
-
Definition of Cost Object in Cost Accounting
A cost object is anything for which a separate measurement of costs is desired. It may be a project, a customer, an activity or a department. The concept of cos
-
What is Contribution Margin? Meaning and Calculation
The contribution margin can be defined as the amount by which the selling price of a product exceeds its total variable unit costs. This difference between the
-
What Are Perpetual and Periodic Stock Systems?
A trade or manufacturing company’s net stock position and the cost of stock issued over the year are often required to calculate the stock consumption and
-
What is the Just-in-Time Inventory System
The just-in-time inventory system is a method of stock control that involves a systematic approach to keeping accurate records of all the stock and inventory. A