Over and Under Absorption
Usually overheads are absorbed on the basis of predetermined rates. Since predetermined overhead rates are based on budgeted overheads and budgeted production, invariably the overheads …
Read MBA, BBA, B.COM Notes
Usually overheads are absorbed on the basis of predetermined rates. Since predetermined overhead rates are based on budgeted overheads and budgeted production, invariably the overheads …
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 …
Formulas: (i) Maximum Level of Stock = (Reorder Level + Reorder Quantity) – (Minimum rate of consumption x Minimum reorder period) Maximum Level may be …
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 …
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 …
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 …
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 …
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, …
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 …
Cost accounting is the classifying, recording and appropriate allocation of expenditure for the determination of the costs of products or services, and for the presentation …