Cost Accounting

When your business is routinely producing exceptional items for clients, you may require a job order costing system to appropriately keep a check of each request. By utilizing a job order costing system, you can rest assured that the time and assets you’re utilizing to manufacture an item will bring in benefits for your organization. […]

 There are different categories that companies can use to classify their costs. One such categorization is direct and indirect costs. Direct costs refer to all the costs that a company incurs related to producing a product, whether a good or service. These costs mostly include material and labour costs such as raw materials, salaries and

In factories, industries, and big corporations the accurate estimation of production cost is a significant chapter. Large quantities of homogenous objects are often being produced in the industrial sector on regular basis. During the manufacturing process evaluation of direct and indirect costs is an important segment. To efficiently calculate the cost of the total production

Introduction In this article, we will cover the standard costing. This includes the definition, objectives, types of performance standard as well as the advantages and disadvantages of it. First, let’s go through the overview of standard costing. Cost accounting is the branch of accounting which, as the name suggests, deals with the recording, analyzing and

Overview In this article, we will cover how to calculate the predetermined overhead rate. The predetermined overhead rate is also commonly called predetermined absorption rate or predetermined overhead absorption rate. It also can be called as predetermined manufacturing overhead rate. Before jumping to detail, let’s go through the basic overview and key definition first. When

Introduction In this article, we will cover the prime and conversion costs of a business. This includes the key definitions, examples and key differences between the tow costs. First, let’s understand some overview of the basic costs structures as below. As we are aware of, Typically businesses exist to make profits. These profits are generated

Introduction All businesses are run by business managers at effectively three levels of operations, management, and strategic. Every successful business needs a well-planned strategy and implementation of these plans. These Managers make decisions regularly which may affect the businesses. In a simple example; a restaurant serving a customer with a customized order in late hours