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
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
Items of Revenues and Gains to be disclosed in balance sheet The following are the items of incomes and gains, which should be shown separately: 1. Turnover: Under
Items of Expenses and Losses to be disclosed in Balance Sheet The expenses should be shown under suitable heads to the extent possible. Any expense, which exceeds 1%
Creditors or Payable turnover Ratio A business concern may not purchase its all items on cash basis. Sometimes, there may be credit purchase. This ratio is calculated to
Average Collection Period Ratio is otherwise called as Average Age of Debtors. The term average collection period refers to the number of days waited to receive the amount
Debtors or Receivables Turnover Ratio It is otherwise called as Debtors Velocity. All the goods can not be sold on cash. There may be some credit sales. The