Category: Accounting
Articles on cash book accounting, cost accounting, management accounting, debt accounting etc.
Methods of Overhead Absorption There are various methods of absorption of factory overhead. Some of the methods are briefly explained below. 1. Production Unit or Cost Unit Method This …
Management Accounting
Concepts / Conventions of Management Accounting The intelligent interpretation of data can provide a basis for drawing fruitful conclusions in the management accounting system. In this way, some special …
Management Accounting
Similarities of Net Present Value and Internal Rate of Return The following are some of the similarities between Net Present Value (NPP) & Internal Rate of Return (IRR). 1. …
Cost Accounting
Understanding Perpetual Inventory Valuation System Under Perpetual Inventory Valuation system, the value of balances is recorded after every receipt and issue of materials. It facilitates the physical verification of …
Cost Accounting
Factors of Minimum Stock Level The stock of materials should not be maintained below the minimum stock level at any cost. If so, the production will be affected. The …
Cost Accounting
General Purchase Procedure of a Company The purchase procedure of the company differ from one to the other. The following is the general purchase procedure. Specific forms and records …
Management Accounting
Advantages of Internal Rate of Return Method A brief explanation of advantages of Internal Rate of Return method is presented below. 1. It considers the time value of money …
Cost Accounting
What is a Contract Costing? Contract Costing is otherwise called as terminal costing. It is one of the methods of Job Costing. Contract costing is also prospered just like …
Cost Accounting
Selling and Distribution Overhead Selling and Distribution overhead is the combination of two words ie Selling overhead and Distribution overhead. What is Selling Overhead? Selling overhead is the indirect …
Cost Accounting
Over / Under absorption of overhead The overheads are absorbed on the basis of predetermined overhead absorption rate according to the actual production of goods throughout the accounting period …
