Historical Cost
Jennifer edwards Historical cost can be defined as the value of the resource given up or the liability that incurred at the time when the resource was given up. The liability may…
Above the Line Costs
The concept of above the line costs is associated with the production of the advertisement for a product or for the service of the business. These are the costs of…
Mixed Cost
Mixed cost is a cost that contains both the fixed cost and a variable cost component. It is important to understand the mixed cost so that one can find out…
Traditional Costing
Traditional costing is a method of costing where the manufacturing overhead is related to the manufactured products on the biases of the batch produced and the volume of the products…
Full Cost Method
Full cost method of accounting is an accounting system that is used by the companies dealing in with the trading of crude oil and natural gas. There are two methods…
Flow of Costs
This is an accounting method that explains the flow of costs among various operations within a business or a company. The flow of cost system is associated with the production…
Managing Variable Costs
As the name indicates variable costs are the costs that fluctuate or change with the number of goods produced by the business. Variable costs along with the fixed costs comprise…
Types of Business Costs
It is very important to distinguish or differentiate business costs as they help in recognizes the cost figures that your business produce by selling goods or services. There are…
Stock Control
Shamsa Rafique Stock Control: Definition and Explanation: The materials purchased by a concern may be classified as stock items which are taken into store and held until required, or as direct deliveries…
Step Method of Cost Allocation
Step Method of Cost Allocation: Definition: Step method is the method of allocating service department's costs to other service departments, as well as to operating departments, in a sequential manner.…
Standard Costing and Variance Analysis Case Study
Standard Costing and Variance Analysis Case Study: Case A: Effect of assumed standard levels Case B: Factory overhead variance analysis Case A: Effect of Assumed Standard Levels: Harden Company has…
Standard Costing and Variance Analysis
Standard Costing and Variance Analysis: After studying this chapter you should be able to: Explain how direct materials standard and direct labor standards are set. Compute the direct materials price…
Standard Costing and Variance Analysis Problems & Solution
Standard Costing and Variance Analysis Problems & Solution: Problem 1: Materials Variance Analysis: The Schlosser Lawn Furniture Company uses 12 meters of aluminum pipe at $0.80 per meter as standard…
Standard Costing System Discussion Questions and Answers
Standard Costing System Discussion Questions and Answers: Questions: (a) Define standard costs. (b) Name some advantages of standard cost system. See answer A team of management consultants and company executives…
Standard Costs-Management by Exception
Standard Costs-Management by Exception: Learning Objective of the Article: Define and explain the terms "standard cost" and "management by exception". Definition and Explanation of Standard Cost and Management by Exception:…
Factory Overhead Spending Variance
Spending Variance in Factory Overhead Learning Objective of the article: Define and explain factory overhead spending variance. How is FOH spending variance calculated? Definition: Factory Overhead spending variance is the difference…
Setting Standard Costs – Ideal and Practical Standards
Setting Standard Costs - Ideal and Practical Standards: Learning Objective of the Article: Who provide the inputs in setting standard costs? Define and explain ideal and practical standards. What is…
Reciprocal Method of Cost Allocation – Service Department Costing
Abida Rehman Definition: Reciprocal method is a method of allocating service department costs to other departments that gives full recognition to interdepartmental services. Explanation: The reciprocal method gives full recognition to interdepartmental…