Accounting

Fixed Costs create difficulties in Costing Units of products Fixed costs can create difficulties if it becomes necessary to express the costs on a per…

Product cost refers to the costs used to create a product. These costs include direct labor, direct materials, consumable production supplies, and factory overhead. The…

To accurately assess the profitability of a business plan, managers must distinguish between fixed and variable costs. Planners should then further dissect these figures, paying…

Elements of mixed costs: Mixed costs contain elements of both fixed and variable cost behavior. As with step costs, the fixed elements is determined by…

Distinguish between Variable, Fixed, and Mixed Cost Variable Cost: Changes in total, in direct proportion to changes in the level of activity. The total cost…

Sunk cost is a cost that has already been incurred and, therefore, is irrelevant to the decision-making process. One example is, a company purchased a machine…

The relevant cost in decision: Making business decision requires managers to compare two or more alternative courses of action. Accountants should use two criteria to…

A discretionary cost is an expenditure for a period-specific cost or a fixed asset, which can be eliminated or reduced without having an immediate impact…

Ethical responsibilities of Management Accountants Practitioners of management accounting and financial management have an obligation to the public, their profession. the organization they serve, and…

Differences between Cost Accounting and Management Accounting The difference between cost accounting and management accounting is very crucial for the users of both the accounting…