Accounting Basics 1 min read
Cost Accounting – Elements of Cost
The following chart shows the various elements of cost and how they are classified. Direct or Indirect Materials The materials…
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Cost Accounting – Classification of Cost
Costs can be classified based on the following attributes: By Nature In this type, material, labor and overheads are three…
Accounting Basics 3 min read
Cost Accounting vs Financial Accounting
Both cost accounting and financial accounting help the management formulate and control organization policies. Financial management gives an overall picture…
Accounting Basics 3 min read
Cost Accounting – Advantages
The advantages of cost accounting are: Disclosure of profitable and unprofitable activities Since cost accounting minutely calculates the cost, selling…
Accounting Basics 5 min read
Concepts of Cost Accounting
Following are the main concepts of cost accounting: Cost There is a cost involved to purchase or produce anything. Costs…
Accounting Basics 1 min read
Cost Accounting – Introduction
Cost accounting is the application of accounting and costing principles, methods, and techniques in the ascertainment of costs and the…
Accounting Basics 1 min read
Business Entity Concept
According to this concept, the business and the owner of the business are two different entities. In other words, I…
Accounting Basics 2 min read
Method of Depreciation
Depreciation can be calculated using any of the following methods, however the most popular methods remain (a) Straight Line Method…
Accounting Basics 1 min read
Accounting Entries Related to Assets and Depreciation
Let us see the accounting entries related to assets and depreciation: S.No. Particulars Journal Entries 1 Purchase of Fixed Assets…
Accounting Basics 1 min read
Why Do We Need to Account for Depreciation?
Here is why we need to provide depreciation: ● To ascertain the true profit during a year, it is desirable to…
Accounting Basics 1 min read
Financial Accounting – Depreciation
Depreciation reduces the value of assets on a residual basis. It also reduces the profits of the current year. Depreciation…
Accounting Basics 3 min read
Cash vs. Accrual Basis of Accounting
Cash Basis of Accounting Cash Basis of Accounting uses receipts and payments of cash to record incomes and expenses. Therefore, under…