| | | Introduction to Cost Accounting| 0
Costs are classified in ABC Analysis into 5 categories: (1) Unit level cost: incurred/essential for each and every unit of output/service. (2) Batch level cost: costs related to a batch. E.g. Material inspection and handling, production set-up. (3) Product level cost: special mould for a particular product. E.g. Cake....
| | | Introduction to Cost Accounting| 0
Techniques of Costing: In each of the costing methods, the following techniques may be used to ascertain costs: (1) Absorption Costing: In this case both fixed and variable costs are allotted to cost units. (2) Standard Costing: It uses standard costs and standard revenues for the purpose of control...
| | | Introduction to Cost Accounting| 0
NEED / IMPORTANCE / ADVANTAGES OF COST ACCOUNTING: (1) Determination of total cost: Cost accounting helps to account for all the costs incurred in manufacturing a product or providing a service. (2) To Fix Selling Price: Cost accounting helps to fix the selling price for a product / service...
| | | Introduction to Cost Accounting| 0
OBJECTIVES OF COST ACCOUNTING : (1) Ascertainment of cost (2) Determination of selling price (3) Cost control and cost reduction (4) Ascertaining the profit of each activity. (5) Assisting management in decision making. (6) To frame various budgets.
| | | Introduction to Cost Accounting| 0
COST OBJECT / OBJECTIVE OF COST: The objective of cost are as follows: (1) Determination of Total Cost: To determine the total cost of manufacturing a product or providing a service. (2) Helps to fix selling price: On knowing the total cost, a manufacturer will be able to add...
| | | Introduction to Cost Accounting| 0
NATURE / FEATURES / CHARACTERISTICS OF COST: (1) Cost is an expense incurred, actual or notional. (2) Cost may be notional costs also. A notional cost is a cost which is taken into consideration, Example Depreciation on Fixed Assets, but which is actually not paid to anyone. (3) A...
| | | Introduction to Cost Accounting| 0
Cost Accounting: The current official terminology of the Chartered Institute of Management Accountants of England (formerly known as Institute of Cost and Management Accountants of England) defines cost accounting as, “that part of management accounting which establishes budgets and standard costs and actual costs of operations, processes, departments or...
| | | Introduction to Cost Accounting| 0
Cost : The Terminology of Management Accounting (CIMA) has defined cost as the amount of expenditure (actual or notional) incurred on, or attributable to, a specified thing or activity. Cost is the amount of expenditure incurred on a specified thing or activity. Costing means classifying, recording and appropriate allocation...
BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.
Disclaimer: We are not affiliated with any university or government body in anyway.
©2019 BMS - Bachelor of Management Studies Community
A Management Paradise Venture
Recent Comments