Month: September 2020

Introduction Standard costing – is a technique which establishes predetermined estimates of the cost of products and then compares these predetermined costs with actual costs as they are incurred. The predetermined costs are known as standard costs and the difference Read More …

All manufacturing costs (variable and fixed) are considered as cost of production and are used in determining the cost of goods manufactured and the value of inventories. Fixed manufacturing overheads are absorbed into the cost of finished goods.   Arguments Read More …

This is a costing technique in which only variable manufacturing costs are considered and used in valuing inventories and also in determining the cost of goods sold i.e. only variable production cost are considered as products cost and are allocated Read More …

MARGINAL COSTING/DIRECT COSTING/VARIABLE COSTING This is a costing technique in which only variable manufacturing costs are considered and used in valuing inventories and also in determining the cost of goods sold i.e. only variable production cost are considered as products Read More …

This is a systematic way of examining the relationship between changes in activity level and changes in the total sales revenues, expenses and net profit. The objective of CVP analysis is to establish what would happen to the financial results Read More …

Introduction This is a method of costing employed to ascertain the cost of providing a service e.g. road transport undertakings, electricity supply, canteen services, airways services etc. In general, the unit of cost in service costing may be predetermined as Read More …