PRODUCT COSTING METHODS

A costing method is a method of costing which is designed to suit the goods are processed or manufactured or the way that services are provided. Although each firm will have a costing method which has unique features, there will Read More …

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COST BOOK-KEEPING

Cost book-keeping refers to a system of recording various cost information in the books of accounts. There are two systems of cost book-keeping: i. Integrated system ii. Non-integrate system/interlocking system. Integrated system This is one in which cost accounts and Read More …

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Overheads of service departments

Service departments are those which are not engaged in production of any specific items but provide support to production department e.g. stores department, repairs and maintenance department, personnel department etc The overheads charged to service department must further be reappointed Read More …

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Causes of labour turnover

Labour Turnover of an organisation is change in the labour force during a specified period measured against a suitable index. The rate of Labour Turnover in an industry depends upon several factors such as, nature of the industry, its size, Read More …

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Methods of labour remuneration

This can be classified into four:- i) Time based system ii) Performance/output base system iii) Bonus schemes iv) Profit sharing/co-ownership Time based system This is further subdivided into two a) Basic system (flat rate) Under this system workers are paid Read More …

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CLASSIFICATION OF COSTS

Cost may be classified on the following bases: Functions Behaviour Traceability to end product Time Identify with stock Controllability Relevance for decision making 1. Classification by Function On the basis of function, costs may be classified into production cost, administration Read More …

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MARGINAL AND ABSORPTION COSTING NOTES

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 …

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