Cost Accounting

This category covers all kinds of cost accounting topics such as costing methods, production costing as well as other concepts in costing a product or service.

What is Job Order Costing?

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. …

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Absorption of Overheads in Cost Accounting: Definition, Types, And Example

 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 …

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Standard Costing: Meaning, Objectives, Types, Advantages and Disadvantages

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 …

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What are Prime and Conversion Costs?

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 …

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What is Throughput Accounting?

Introduction Large firms around the world produce millions of products each month. Every product we buy is then the sum of the parts of several by-products. Let’s take an example of a garment business; it manufactures different garment wears like Shirts. That manufactured shirt utilizes raw cotton, stitching threads, sewing machines, colors, and skilled labor …

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What is Lifecycle Costing?

Introduction Lifecycle costing is one of the product costing methods that looks at the phases or stages of the product lifecycle. Today’s global market is ever-changing and the internet of things influenced by social media has already revolutionized the way customers’ used to buy. There are a number of Smartphone brands out in the market, …

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