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Marginal Cost Equation
Equations for elements of cost are as follows: Sales = Variable costs + Fixed Expenses…
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Cost Accounting – CVP Analysis
Cost-Volume-Profit (CVP) Analysis is also known as Break–Even Analysis. Every business organization works to maximize…
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Direct Labor Variance
Direct labor variances are categorized as follows: ● Labor Cost Variance ● Labor Rate of Pay Variance…
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Direct Material Variance
Material variances can be of the following categories: ● Material Cost Variance ● Material Price Variance ● Material…
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Cost Accounting – Variance Analysis
When the actual cost differs from the standard cost, it is called variance. If the…
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Standard Cost Card
Format Standard Cost CardNo ... ... ... ...Product... ... ... ...Date of setting Standard... ...…
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Points Related to Standard Costing
● Standard costing includes pre-determination of costs under specific working conditions. ● In this process, the standard…
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Cost Concept
It is a very important concept based on the Going Concern Concept. We book the…
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Cost Accounting – Standard Costing
Planned cost is a key for effective cost control which is not provided by historical…
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Advantages of Marginal Costing
The advantages of marginal costing are as follows: ● Easy to operate and simple to understand.…