What is Overhead? Overhead is the cost of material, labour and expenses, which cannot be easily identified with any, job or process. The costs, which cannot be identified
What are materials? Materials constitutes major portion of the total cost of the product. Supplies are also used for the manufacture of product. Both materials and supplies are
Even though Cash flow statement and Funds flow statement focus on the concept of fund, there are some differences between these two statements. They are discussed below. Differences
History of ABC System or How did Activity Based Costing emerge? Activity Based Costing (ABC System) is the latest development of Cost Accounting System. Under ABC system, the
Debt Equity Ratio It is otherwise called as External-Internal Equity Ratio. This ratio is calculated to know the level of claims of the outsiders and owners i.e. shareholders
The various cost concepts should be understood by every reader. If so, one can easily understand the standard cost and standard costing. Hence, some of the cost concepts
Weaknesses of Traditional Cost Accounting System Providing inaccurate costing information leads to taking of wrong decisions by the top management if used for control purposes or for fixing
What is Cost Accounting Cost accounting is a system of accounting which includes collecting, classifying, processing, analyzing and reporting of information to top management for taking quality decisions
Techniques to exercise control over Capital Expenditure The accepted or selected proposals may be obsolescence due to advancement in technology in the short run. Therefore, investment made in
Liabilities of the Company Liabilities are shown in the left side of the Balance Sheet. If Balance Sheet is prepared vertically, liabilities are shown under assets. The Companies