Accounting Basics 1 min read
Management Accounting – Introduction
Institute of Chartered Accountants of England and Wales defines management accounting as: Any worm of accounting which enables a business…
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Break-Even Chart
Break-Even Chart is the most useful graphical representation of marginal costing. It converts accounting data to a useful readable report.…
Accounting Basics 3 min read
Marginal Cost Equation
Equations for elements of cost are as follows: Sales = Variable costs + Fixed Expenses ± Profit /Loss Or Sales…
Accounting Basics 2 min read
Cost Accounting – CVP Analysis
Cost-Volume-Profit (CVP) Analysis is also known as Break–Even Analysis. Every business organization works to maximize its profits. With the help…
Accounting Basics 2 min read
Direct Labor Variance
Direct labor variances are categorized as follows: ● Labor Cost Variance ● Labor Rate of Pay Variance ● Total Labor Efficiency Variance ● Labor…
Accounting Basics 2 min read
Direct Material Variance
Material variances can be of the following categories: ● Material Cost Variance ● Material Price Variance ● Material Usage Variance ● Material Mix Variance…
Accounting Basics 1 min read
Cost Accounting – Variance Analysis
When the actual cost differs from the standard cost, it is called variance. If the actual cost is less than…
Accounting Basics 1 min read
Standard Cost Card
Format Standard Cost CardNo … … … …Product… … … …Date of setting Standard… … … … Element of Cost…
Accounting Basics 1 min read
Points Related to Standard Costing
● Standard costing includes pre-determination of costs under specific working conditions. ● In this process, the standard quantity of machine time, labor…
Accounting Basics 1 min read
Cost Concept
It is a very important concept based on the Going Concern Concept. We book the value of assets on the…
Accounting Basics 1 min read
Cost Accounting – Standard Costing
Planned cost is a key for effective cost control which is not provided by historical cost concepts. The standard costing…
Accounting Basics 1 min read
Advantages of Marginal Costing
The advantages of marginal costing are as follows: ● Easy to operate and simple to understand. ● Marginal costing is useful in…