Posted inAccounting Basics
Points Related to Standard Costing
● Standard costing includes pre-determination of costs under specific working conditions. ● In this process, the standard…
Posted inAccounting Basics
Cost Concept
It is a very important concept based on the Going Concern Concept. We book the…
Posted inAccounting Basics
Cost Accounting – Standard Costing
Planned cost is a key for effective cost control which is not provided by historical…
Posted inAccounting Basics
Advantages of Marginal Costing
The advantages of marginal costing are as follows: ● Easy to operate and simple to understand.…
Posted inAccounting Basics
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…
Posted inAccounting Basics
Ascertainment of Profit under Marginal Cost
‘Contribution’ is a fund that is equal to the selling price of a product less…
Posted inAccounting Basics
Features of Marginal Costing
Features of marginal costing are as follows: ● Marginal costing is used to know the impact…
Posted inAccounting Basics
Need for Marginal Costing
Let us see why marginal costing is required: ● Variable cost per unit remains constant; any…
Posted inAccounting Basics
Cost Accounting – Marginal Costing
Marginal cost is the change in the total cost when the quantity produced is incremented…
Posted inAccounting Basics
Cash Budget
Cash budget comes under the category of financial budget. It is prepared to calculate budgeted…