Standard costing includes setting standard rates to absorb material , labour ,overheads. Setting of standards rates helps in exact valuations , strengthening control over differences […]
Contract Costing Easy to understand “ job order costing on larger scale”. For construction of building and other large scale wok which take considerable […]
Marginal and Absorption Costing Methods The main difference between marginal costing and absorption costing is that Under Marginal costing all the fixed cost is treated […]
ABSORPTION COSTING Method of costing in which overheads are absorbed in relevant cost centers on appropriate rates known as overhead absorption rate (OAR). This rate […]
TIME WORK SYSTEM In this system labor is paid on base of time worked. Total labour remuneration is sum of basic pay and overtime […]
ABC Plan ABC Plan is used to control the inventory by applying security measures or controls on each category. Through this technique management is able […]
Entity needs to maintain inventory at appropriate level keeping balance in contrasting factors inventory levels e.g if large amount of inventory is ordered ordering cost […]
Small businesses maintain accounts for individual job orders .Due to lack of huge manufacturing orders they find ease to maintain for cost accounts on basis […]
According to IAS2 inventory should be measured at lower of COST and NET PRESENT VALUE Net realizable value(NPV) is the estimated selling price(SP) in the […]
Materials Purchase Cycle When a department stock level drops down , the particular department issues purchase request to purchase department in purchase requisition form […]
