Reconciliation of Financial and Cost Accounting
by Reconciliation of Cost and Financial Accounts is process to find all the reasons behind disagreement in profit which is calculated as per cost accounts and …
Tag: Accounting for Management
Operating Costing
Operating (Operational) costs are the expenses which are related to the operation of a business, or to the operation of a device, component, piece of …
Overhead Cost Allocations
The allocation of certain overhead costs to produced goods is required under the rules of various accounting frameworks. In many businesses, the amount of overhead …
Setting of Reorder Level, Maximum Level, Minimum Level
Formulas: (i) Maximum Level of Stock = (Reorder Level + Reorder Quantity) – (Minimum rate of consumption x Minimum reorder period) Maximum Level may be …
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 …
Subsidiary Books
Subsidiary Books of Account Also known as special purpose books, special purpose subsidiary books, and subsidiary books of accounts are various books recording financial transactions …
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 …
Preparation of Cost Sheet
A cost sheet shows every expense involved in creating a product. Companies and contractors prepare cost sheets to show clients how much money it costs …
Classification of Cost
The following points highlight the five main types of classification of costs. 1. Cost Classification by Nature 2. Cost Classification in Relation to Cost Centre …
Accounting Concepts
There are a number of conceptual issues that one must understand in order to develop a firm foundation of how accounting works. These basic accounting concepts are …