Costing is same as cost accounting as it also includes the cost incurred in the production. Costing includes fixed, variable and manufacturing cost of the product. Costing is also known as absorption costing.

Above the Line Costs

The concept of above the line costs is associated with the production of the advertisement for a product or for the service of the business. These are the costs of the advertisements that are associated with the creative side of the production of the

Mixed Cost

Mixed cost is a cost that contains both the fixed cost and a variable cost component. It is important to understand the mixed cost so that one can find out the degree of presence of both the fixed and the variable cost factor in

Traditional Costing

Traditional costing is a method of costing where the manufacturing overhead is related to the manufactured products on the biases of the batch produced and the volume of the products produced in that batch. The metrics that may be involved in traditional costing can

Full Cost Method

Full cost method of accounting is an accounting system that is used by the companies dealing in with the trading of crude oil and natural gas. There are two methods for accounting used for these natural commodities one is the full cost method and

Flow of Costs

This is an accounting method that explains the flow of costs among various operations within a business or a company. The flow of cost system is associated with the production or manufacturing cost activities of the business. The manufacturing costs involve a number of

Managing Variable Costs

As the name indicates variable costs are the costs that fluctuate or change with the number of goods produced by the business. Variable costs along with the fixed costs comprise the total costs of the goods produced. Variable costs change with the percentage of

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

Types of Business Costs

  It is very important to distinguish or differentiate business costs as they help in recognizes the cost figures that your business produce by selling goods or services. There are different types of costs such as direct costs, indirect costs, fixed costs, variable costs,

Stock Control

Stock Control: Definition and Explanation: The materials purchased by a concern may be classified as stock items which are taken into store and held until required, or as direct deliveries to the point of consumption. The control of those materials which are stock items

Step Method of Cost Allocation

Step Method of Cost Allocation: Definition: Step method is the method of allocating service department’s costs to other service departments, as well as to operating departments, in a sequential manner. The sequence typically starts with the service department that provides the greatest amount of
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