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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ERP Implementation Guidance for Management Accountants
ERP implementation refers to integrating an ERP system with various modules to improve financial data management, analysis, and decision-making. The ERP impleme
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What is Material Cost Variance in Costing?
Material Cost Variance (MCV) is the difference between the standard cost of the material allowed (standard material) for the output to be achieved and the actua
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What is variance analysis and its usefulness?
Variance refers to the difference between the standard and actual variables. For example, you can calculate the selling price variance to find the difference be
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What Are the Limitations of Absorption Costing?
The term “absorption costing” refers to a method of inventory costing that treats all direct and indirect manufacturing costs as inventory costs. Th
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What is a Budget Manual? – Meaning and definition
A budget manual outlines the policies, procedures, timelines, and responsibilities related to the budgeting process within an organisation. It serves as a refer
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What Are Direct Material Cost Variances?
Direct material cost variance refers to the difference between direct materials’ actual and standard costs. It is calculated using actual output. Direct m
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Basics of Cost and Costing in Management Accounting
Cost is a word used to describe the money spent on a particular thing. In our private lives, we talk about the cost of running a car or heating our home. In man
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How to calculate liquidity ratios?- With examples
The term liquidity refers to the ability of the firm to meet its obligations as and when due. The current liability of the company meets the realising amount fr
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What is a Perpetual Inventory System?
Businesses that use a perpetual inventory system maintain accurate records of the costs associated with each inventory acquisition and sale. These records show
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What are Direct Expenses in Costing?
A direct expense is an expenditure that can be easily traced back to a specific cost centre within a company. Direct expenses are also known as chargeable expen