Prime Cost
Prime cost is the combination of a manufactured product’s costs of direct materials and direct labor. In other words, prime cost refers to the direct…
Accounting
Normal Spoilage is Planned Spoilage – Explanation
Normal Spoilage is Planned Spoilage – Normal spoilage refers to the inherent deterioration of products during the production or inventory processes of the sales sequence.…
Basis of Apportionment of Overheads
The basis of Apportionment of Overheads Cost allocation is the assigning of a common cost to several cost objects. For example, a company might allocate…
Characteristics of Job Order Costing
Job costing is one of the methods of costing. It is also known as job order costing. In this system, work is undertaken to customer’s…
Distinguish between Job Costing and Contract Costing
Job costing and contract costing both are the methods of costing and used when we receive specific order for performing any work. But after this,…
Economic Batch Quantity (EBQ)
Economic batch quantity (EBQ) also called optimal batch quantity or economic production quantity is a measure used to determine the number of units that can…
Distinguish between Job Costing and Batch Costing
Job costing is one of the methods of costing. It is also known as job order costing. In this system, work is undertaken to customer’s…
Allocation and Apportionment of Overheads
Allocation and Apportionment of Overheads Overheads are common costs incurred for the benefits of a number of costs centers or cost units. Therefore, they cannot…
Classification of Overhead
Overhead is those costs required to run a business, but which cannot be straight attributed to any particular business activity, product, or service. A manufacturing…
Basic Features of Contract Costing
Contract costing is a way of providing a quotation for especially large and long term projects that will usually be performed over a number of…
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