Day: February 23, 2021

The joint stock companies, are legally required to prepare a set of financial statements to periodically assess the profits earned and to know the financial position of the company as on a specified date. Thus, like other business enterprises, a Read More …

In many small firms, costing system is maintained on memorandum statements whereby cost calculations are made on rough sheets, formal documents, books, cards etc. which are not a part of a set of accounts maintained on double entry principles. The Read More …

All types of manufacturing concerns can broadly be classified into two categories : (a) Mass production concerns and (b) Special order concerns. In mass production, firms manufacture uniform types of products. Since production is of standard products, it is on Read More …

Overheads are the indirect costs which cannot be allocated to any specific job or process because they are not capable of being identified with any specific job or process. Overheads include cost of indirect material, indirect labour, indirect expenses which Read More …

When cost accounts and financial accounts are maintained in two different sets of books, there will be prepared two Profit and Loss Accounts one for costing books and the other for financial books. The profit or loss shown by costing Read More …

Marginal costing is a technique where only the variable costs are considered while computing the cost of a product. The fixed costs are met against the total fund arising out of excess of selling price over total variable cost. This Read More …