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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.…
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Income Statement under Marginal Costing
Income StatementFor the year ended 31-03-2014ParticularsAmountTotalSales 25,00,000Less: Variable Cost: Cost of goods manufactured12,00,000 Variable Selling Expenses3,00,000 Variable Administration Expenses50,000 15,50,000 Contribution 9,50,000Less: Fixed Cost: Fixed…
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Ascertainment of Profit under Marginal Cost
‘Contribution’ is a fund that is equal to the selling price of a product less…