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.
Introduction How do customers’ become loyal to the brands that they buy repeatedly? Or in certain demography a particular brand is popular? How do brands achieve that success? These brands produce quality products; provide value for money for their products to the customers. These brands apply a concept of Total Quality Management (TQM) throughout their […]
JUST IN TIME (JIT) Techniques in Production Read More »
Marginal Costing is an accounting system in which fixed costs attributable to the relevant production period are written off in full against the contribution, and the variable costs are charged to cost units
The Marginal Costing: An overview in relation to the absorption costing Read More »
When a customer visits a shopping mall and buys a product, Say a T-Shirt; what does it look for in that product? Product quality, brand value, price tag, product representation (packaging)… almost certainly before customers buy a product, they look for alternatives, make comparisons with other brands and then decide to purchase their desired product.
What is Target Costing? Read More »
Every product we use is produced in some kind of manufacturing facility. There are different types of costs associated with each unit of product, e.g. Material and labor costs. These costs can be classified into two categories of Fixed and Variable costs. Different costing techniques account for these costs in different ways. Overheads in production
What is Absorption Costing Method? Read More »
Introduction Every product we use or see has a price tag (cost + margin), that pricing decision can be the difference between a product being successful or flop. In traditional costing the variable costs are spread across the products line uniformly irrespective of the product consuming that cost or not. However different products require different
What is Activity Based Costing (ABC)? Read More »
Introduction In previous articles, we have covered both perpetual inventory system and periodic inventory system. In this article we will cover the advantages and disadvantages of perpetual and periodic inventory system. Typically, in a manufacturing business or a business with a physical stock, proper inventory management is necessary. Businesses need to keep track of their
Advantages and Disadvantages of Perpetual Inventory and Periodic Inventory System Read More »
Introduction The closing inventory and cost of goods sold of a business are two important values that help a business determine their profits or losses for a period. To calculate the cost of goods sold, a business needs to know the value of its closing inventory. This can be calculated by tracking the inventories of
What is perpetual inventory system? Read More »
Businesses need to calculate the value of their inventory and cost of goods sold at the end of each period to determine their profit or loss. To calculate these, businesses need to keep track of any changes in their inventories during the year. There are two main types of inventory systems that are widely used,
What is periodic inventory system? Read More »
