Standard Cost
Robert Standard cost means what the cost should be. Standard cost is predetermined cost of a unit of product, or an operation or a department or a process. Standard cost is…
Opportunity Cost
Opportunity cost is a concept used for evaluation of alternative uses of resources. Decision makers select that alternative use of resources from which they expect the maximum net return. Opportunity…
Fixed Cost and Variable Cost
This classification is based on cost behaviour. It is one of the most useful classifications f.r the purpose of cost planning and control. Cost behaviour means how a cost will…
Period Cost or Non manufacturig Cost
Cost which is not related to production and is matched against revenues on a time period basis is called period cost, non manufacturing cost or non-inventoriable cost. Period cost includes…
Product Cost or Manufacturing Cost
Product cost -includes costs incurred- for manufacturing or for purchasing goods. In case of manufacturing business product cost consists of direct materials, direct labour and factory overhead. In case of…
Limitations of Financial Accounting
Limitations from which financial accounting suffers may be summarized as follow: 1. Historical And Monetary Nature. Emphasis of financial accounting is on recording transactions revenues only after they have occurred, then…
Management Needs and Accounting
Original financial accounting model based on double entry system of book keeping, developed by an Italian merchant named Lucas Pacioli, is basically to fulfil managerial requirements of a trading business.…
Management accounting uses
Management accounting uses both cost and financial info to advise management in planning and controlling the organization. Management accounting is used for providing information the organization people. Management accountants design specific purpose…
What is Cost Accounting ?
Cost accounting uses information provided by financial accounting together with much more details of operations of cost accounting is collection, processing and evaluation of operating, data. e.g. cost of products, operations, processes,…
What is financial Accounting and its primary concern ?
Financial accounts provide information to inside users i.e, management of accounting entity and to outside users like shareholders, investors, bankers, government departments, trade unions and general public. The information provided…
Why we need Accounting ?
Every organization aims at making best possible use of its scarce resources, wants to know the results of its efforts and needs a measure of comparison so that deficiencies and…
List of accounting softwares
Accounting software is the need of every business now for managing their transactions sales purchases and off course maintain their inventory. We are not the seller of any sort of…
Process Costing System – Exercises and Problems
Rubab Ali Learning Objective: Prepare the format of cost of production report. Calculate equivalent units of production. What is the treatment of normal and abnormal loss in process costing system? How the…
General Questions and Answers about Process Costing System
Sana Ahmed General Questions and Answers about Process Costing System: Questions: What is the primary objective in process costing? See answer Job order and process costing procedures are used by different types…
Business Process Reengineering (BPR)
Business Process Reengineering (BPR): Learning objective of the articles: Define and explain the concept of business process reengineering (BPR) What are the advantages and disadvantages of business process reengineering? Definition…
Process Reengineering Definition
Process Reengineering Definition: An approach to improvement that involves completely redesigning business processes in order to eliminate unnecessary steps, reduce errors, and reduce costs. Click here to read full article…
Product Cost VS Period Cost
Product Cost Versus Period Cost: Learning Objectives of this article: Define and explain the terms "product cost" and "period cost". Give examples of each. What is the difference between product…
Process Costing System Definition
Process Costing System Definition: Process costing system is a costing system used in those manufacturing situations where a single, homogeneous product (such as cement or flour) is produced for long…