Day: September 29, 2020

Introduction This is a method of costing employed to ascertain the cost of providing a service e.g. road transport undertakings, electricity supply, canteen services, airways services etc. In general, the unit of cost in service costing may be predetermined as Read More …

Introduction Process costing is a form of costing where production follows a series of sequence or processes. In process costing the output of any given process becomes the input of the next process. It’s used in such industries as oil Read More …

Introduction Contract costing is a costing technique which is applied in accumulating the cost of large scale jobs. It is also called terminal costing. Characteristics of contract costing There is a high proportion of direct cost since almost all the Read More …

Introduction This is a form of order costing which applies in situations where work is executed strictly according to customers’ specifications. The production process depends upon the number of orders received from customers. As such production is not standardized and Read More …

BATCH COSTING Introduction A batch is a group of similar items which maintains its identity throughout one or more stages of production and is treated as a cost unit. Batch costing is a form of order costing or job costing Read More …

When cost and financial accounts are separately maintained in the two sets of books, two profit and loss accounts will be prepared, one for the costing book and the other for the financial books. The profit or loss shown by Read More …

Cost book-keeping refers to a system of recording various cost information in the books of accounts. There are two systems of cost book-keeping: i. Integrated system ii. Non-integrate system/interlocking system. Integrated system This is one in which cost accounts and Read More …

Service departments are those which are not engaged in production of any specific items but provide support to production department e.g. stores department, repairs and maintenance department, personnel department etc The overheads charged to service department must further be reappointed Read More …

Overhead refers to the total cost of indirect materials, indirect labour and indirect expenses. Indirect costs are those which cannot be identified with the production of some specific goods or services. These costs are incurred for the organization as a Read More …

Labour Turnover of an organisation is change in the labour force during a specified period measured against a suitable index. The rate of Labour Turnover in an industry depends upon several factors such as, nature of the industry, its size, Read More …