Classification of the Materials Cost Variance Variance analysis is a tool of budgetary control by evaluation of performance by means of variances between budgeted amount, planned amount or standard amount and the actual amount incurred/sold.…

Basic Features of Operating Costing Operating costing is a method of ascertaining costs of those enterprises which provide services rather than manufacturing products. This method of costing is applied by Transport Company, Hospital, Hotels, Canteens,…

Cost Reconciliation Statement A cost reconciliation statement is prepared on the same footing on which a bank reconciliation statement is prepared. It is a statement recording the profit or losses shown by the cost accounts…

Integrated Accounting System Integral or Integrated system is a System of accounting under which only one set of account books is maintained to record both the Cost and Financial transactions. The system implies the merger…

Equivalent Production Unit An equivalent unit of production is an indication of the amount of work done by manufacturers who have partially completed units on hand at the end of an accounting period. It is…

Job costing is one of the methods of costing. In this system, work is undertaken to customer’s specific requirements on the basis of orders. Process costing is a method of assigning costs to units of…

Process costing is a method of assigning costs to units of production in companies producing large quantities of homogeneous products. It is a type of operation costing which is used to ascertain the cost of…

Process costing is a method of assigning costs to units of production in companies producing large quantities of homogeneous products. It is a type of operation costing which is used to ascertain the cost of…

A budget generally refers to a department’s or a company’s probable revenues, costs, or expenses. A standard generally refers to a projected amount per unit of product, per unit of input, or per unit of…

Standard Costing system is an estimated or predetermined cost of performing an operation or producing a good or service, under normal conditions. They are generally related to a manufacturing company’s costs of direct material, direct…