What are Centralized & Decentralized Purchases? Centralized Purchase refers to purchasing of all the requirements under the central point of the organization. Like wise, Decentralized Purchase refers to
What is Unit costing? Unit costing is known as “output” or “single output” costing. Unit costing is followed by the concern, which produces a single product on large
Straight Piece Rate System of wage payment The earnings of the worker are calculated on the basis of the number of pieces produced by him/her. The volume of
What Time Rate Wage System? Time Rate System is otherwise called as Time Work, Day Work, Day Wages and Day Rate. It is the oldest method of remuneration.
Different types of Costs in Cost Accounting One can understand the cost accounting properly only after knowing various types of cost. Hence, the understanding of types of cost
Why are Profit Reconciliation Accounts prepared? The very purpose of maintaining financial accounts is the ascertainment of profit or loss for a specific period and also to know
Advantages of Contract Account The followings are the advantages of contract account. 1. Work can be completed without any delay. 2. A contractor can find the total cost
Need for Activity Based Costing Generally, Activity Based Costing is necessary to every manufacturing concern. If the existing traditional cost accounting system provide the accurate cost information to
Meaning of By-Products In a manufacturing process, a main product is accompanied by production of one or more by-products. In other words by-product is a residual material, which
Methods of apportionment of joint costs to joint products The following are the methods of apportionment of joint costs. 1. Physical Units Method of apportionment This method is
