Everything you need to know about the methods and techniques of costing. The methods or types of costing refer to the techniques and processes employed in the ascertainment of costs. There are different methods of costing for different industries. The method of costing to be used in a particular concern depends upon the type of manufacturing and nature of industry. [...]
The below mentioned article provides an overview on activity based costing. The Cost Accounting includes collecting, classifying, processing, analyzing and reporting of information to managers in their planning and control of activities and information system to be developed to help in decision making within the firm. Traditional accounting focused on product costing by tracing direct costs to the product and [...]
Cost plus contracts provide for payment of allowable actual costs plus an agreed element to cover the profit as incentive. Cost plus contracts will be entered mainly in the following situations: (1) Existence of sole supplier of product or service. (2) Product or service is highly complex in nature and the costs cannot be predetermined. (3) When the product or [...]