Tag Archives | Cost

Difference: Fixed Cost and Variable Cost | Cost Accounting

The classification of costs into fixed and variable costs is useful for short-term decision-­making. The classification is based on the pattern in which a cost changes with change in the volume of activity. The volume of activity is measured in terms of the unit of produc­tion or sales, hours worked, distance (e.g. kilometres) travelled, patients examined, stu­dents enrolled, or any [...]

By |2023-06-21T14:16:36+00:00May 16, 2018|Difference Between|Comments Off on Difference: Fixed Cost and Variable Cost | Cost Accounting

How to Calculate Cost of Materials? [With Methods] | Cost Accounting

Costs of direct materials are charged directly to a particular job or batch or process. Costs of indirect materials are included in overheads. The objectives of material accounting are to charge cost of materials to different jobs, batches, and processes on a realistic and consistent basis; and to provide a satisfactory basis for the valuation of inventories. An important issue [...]

By |2018-05-16T07:31:19+00:00May 16, 2018|Cost of Materials|Comments Off on How to Calculate Cost of Materials? [With Methods] | Cost Accounting

Formula to Determine Cost | Output Costing | Cost Accounting

In this article we will discuss about the formulas used to determine cost. 1. Calculation of the Cost of Materials Consumed: Raw materials which become part and parcel of the commodity manufactured are known as direct materials. If opening stock of raw materials, purchase of raw materials, loss of raw materials, transfer of raw materials are given, then cost of [...]

By |2018-03-21T06:06:50+00:00March 21, 2018|Output Costing|Comments Off on Formula to Determine Cost | Output Costing | Cost Accounting
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