Job Costing Overview: Introduction Whats is Job Costing? It is a form of specific order costing in which costs are attributed to an individual job. Job Costing is also referred to as unit costing. It is an order for goods or services made to a producer (the jobbing firm) with a defined specification. NB: A …
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Cost Accounting can be defined as a system put in place by the management to generate the amount incurred in the production of goods and services so as to determine the cost of production and profit generated in the organization. NB: Profit in an organization is determined by the relationship between revenue and cost. If …
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What is Economics Order Quantity (EOQ)? This is the re-order quantity where the total relevant cost of inventory is minimized. EOQ is also known as optimal re-order quantity. It also the ordering quantity at which the control cost ordering is minimized. See also, Inventory Control Summary. Subscribe to our YouTube channel so as not to …
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There are different methods used in calculating labour cost. In this article, I will talk more about the three methods which fall under the PRODUCTIVITY SCHEME – they are; Halsey Bonus Scheme, Halsey Weir Bonus Scheme, and Rowan Bonus Scheme. Labour Cost Labour refers to humanitarian efforts in the production or rendering of services (Both …
In this summary, you will learn the definition of the term Contract Costing, The Characteristics and Problems associated with a Contract, Terminologies in Contract Costing, Accounting for Contracts and the Format for Calculating Notional Profit. What is Contract Costing Contract Costing is a form of specific order costing method used for a project which takes …
Overhead costs are those costs that cannot be traced directly to the level of activities of an organization. The overhead cost can be further described as “the cost of indirect materials, indirect labor, and indirect expenses”. Subscribe to our YouTube channel so as not to miss a tutorial video. What are Indirect Costs? Indirect …
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The following are the main pricing methods that may be used to determine the price of issues and closing stock valuation. Though this article is based on the FIFO method, the LIFO method and the Weighted Average Method (how to solve for gross profit) and also contains a video guide introducing you to this topic. …
Questions on Marginal Costing Techniques Your name Nig. Ltd presents you with the following data about its operations for the quarter ended 31/12/2015 Selling price per liter N50 Direct material per liter N20 Direct labor per liter N15 Variable production overhead per liter N5 Fixed production overhead cost N600,000 Other fixed costs N100,000 Sales commission per liter N3 Quantity sold 180,000 liters Closing …
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Cash Budget Before attempting any question on Cash Budget, make sure you read through the question in order to stick to the exam instruction. Apply these steps in solving questions on a cash budget. Subscribe to our YouTube channel so as not to miss a tutorial video. How to Prepare a Cash Budget Step …
This article will help you with a clear definition and meaning to Break-even Analysis, how the formulas are derived and the definition of terms like (1) Break-even Analysis (2) Break-even point in sales value and units (3) Targeted profit, etc… First, watch this introductory video before the second video in this summary because an idea …
In this article, you will learn How to Prepare an Income Statement, The Uses and Users of the Absorption Costing Techniques, The differences between the Marginal Costing Techniques (MCT) and the Absorption Costing Techniques (ACT), The advantages and the disadvantages of the Absorption Costing Techniques which is also known as the ACT in abbreviation. Subscribe …
After reading through, you will be familiar with the definition of terms, the Quantitative and Qualitative Factors in Decision Making, Types of Costs, Advantages and Disadvantages of the Marginal Costing Techniques and much more. See also: Absorption Costing Techniques. What is Marginal Costing Techniques (MCT) First of all, the marginal costing techniques (MCT) are used …