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Difference between job costing and process costing

Following is the difference between job costing and process costing , below table is meant to make the difference between the two costing systems more clear.   Job Costing Process costing 1 Application Where different products having peculiar specifica­tions are produced against customers’ orders. Where single

Characteristics of process costing system

Process costing system is employed by industries possessing following characteristics: There is mass production of a single product or two or more products in successive runs of scheduled duration e.g., vegetable canning or fruit juice bottling. . All units of output are exactly similar

Standard Cost

Standard cost means what the cost should be. Standard cost is predetermined cost of a unit of product, or an operation or a department or a process. Standard cost is the cost target to be achieved. Such cost targets are scientifically determined after consultation with

Limitations of Financial Accounting

Limitations from which financial accounting suffers may be summarized as follow: 1. Historical And Monetary Nature. Emphasis of financial accounting is on recording transactions revenues only after they have occurred, then summarizing and reporting this information at the end of accounting year in the form

Management Needs and Accounting

Original financial accounting model based on double entry system of book keeping, developed by an Italian merchant named Lucas Pacioli, is basically to fulfil managerial requirements of a trading business. Financial accounting can measure results of a merchandising business on the basis of departments

Management accounting uses

Management accounting uses both cost and financial info to advise management in planning and controlling the organization. Management accounting is used for providing information  the organization people. Management accountants design specific purpose reports to serve needs of decision makers. Because internal decision makers are primarily concerned with impact

What is Cost Accounting ?

Cost accounting uses information provided by financial accounting together with much more details of operations of cost accounting is collection, processing and evaluation of operating, data. e.g. cost of products, operations, processes, jobs, quantities of materials consumed, labour time used etc. for internal planning and control
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