Cost Accounting

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…

Standard Costing System Standard Costing system is an estimated or predetermined cost of performing an operation or producing a good or service, under normal conditions.…

Conversion Cost Conversion costs are those costs required to convert raw materials into finished goods that are ready for sale. They are the combination of…

Process costing is a method of assigning costs to units of production in companies producing large quantities of homogeneous products. It is the only evenhanded…

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…

Normal Spoilage is Planned Spoilage – Normal spoilage refers to the inherent deterioration of products during the production or inventory processes of the sales sequence.…

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…

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…

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) also called optimal batch quantity or economic production quantity is a measure used to determine the number of units that can…