Job and Contract Costing
by Job Costing It is the form of specific order costing which applies when work is undertaken to customers’ special requirements and each order is of …
Tag: Accounting Cycles
ABC Analysis
ABC analysis is a method of analysis that divides the subject up into three categories: A, B and C. Category A represents the most valuable products …
Economic Order Quantity (EOQ)
Economic order quantity (EOQ) is the ideal order quantity a company should purchase for its inventory given a set cost of production, demand rate and …
Inventory Valuation
Inventory valuation is the cost associated with an entity’s inventory at the end of a reporting period. It forms a key part of the cost …
Classification of Capital And Revenue Expenditure
Expenditure on fixed assets may be classified into Capital Expenditure and Revenue Expenditure. The distinction between the nature of capital and revenue expenditure is important as only capital expenditure …
Rectification Errors
Whenever an error occurs, it should be rectified through proper rectification. Otherwise the books of accounts cannot exhibit the true and correct view of the …
Preparation of Trial Balance
Following Steps are involved in the preparation of a Trial Balance: All Ledger Accounts are closed at the end of an accounting period. Ledger balances …
Ledger Posting
After journal entries are made, the next step in the accounting cycle is to post the journal entries into the ledger. Posting refers to the process of transferring …
Perpetual Inventory Control
Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems …
Material Cost Accounting
Material cost is the cost of materials used to manufacture a product or provide a service. Excluded from the material cost is all indirect materials, …