Inventory valuation : Inventory valuation : Inventories should be generally valued at the lower of cost or net realizable value. What is inventory valuation? Inventories should be generally valued at the lower of cost or net realizable value. This principal…
Element of cost means the grouping of costs according to their common characteristics. Further, cost is the amount of resource given up in exchange of some goods or services. It is defined as the amount of expenditure (actual or notional)…
The analysis of ratios related to sales measure the profitability or the operational efficiency of the firm. This ratios reflect the final results of business operations. They are some of the most closely watched and widely quoted ratios. Management attempts…
Cost accounting is defined as ” the process of accounting for cost which begins with recording of income and expenditure or the basis on which they are calculated & ends with the preparation of periodical statements and reports of ascertaining…
ABC analysis in cost accounting is an accounting methodology that assigns cost to activities rather than products or services. This helps resources & overhead costs to be more accurately assigned to products & services that consume them. Meaning and definition…
Marginal costing means change in total cost due to production of an additional unit of output. And it is a variable cost applied to the unit cost. Index 1. What is marginal cost? 2. What is marginal costing ? 3.…