Tag Archives | Calculation

How to Calculate Tender Price? | Cost Accounting

The following article will guide you about how to calculate tender price or estimated cost of production. Introduction: In big manufacturing concerns it is always advantageous to take up planned production. For this purpose an estimate of all types of production is to be prepared before commencing the production. In estimating and fixing up the targets of production expenses a [...]

By |2018-03-21T06:06:51+00:00March 21, 2018|Tender Price|Comments Off on How to Calculate Tender Price? | Cost Accounting

How to Calculate Profit on Cost or on Selling Price? | Cost Accounting

To determine the selling price of goods produced it is essential to add profit to the cost of saleable goods. Following points should be considered while computing profit: 1. If Percentage of Profit is given on cost then amount of profit will be calculated as follows: It is further assumed that 10% profit has to be earned, then- Profit= (1,25,000 [...]

By |2018-03-21T06:06:50+00:00March 21, 2018|Output Costing|Comments Off on How to Calculate Profit on Cost or on Selling Price? | Cost Accounting

Calculation of Commission in Final Accounts (With Illustrations)

The law permits payment of commission to managerial personnel on net profit calculated before taking into account the commission. If the profits are, for example Rs 7,20,00,000, a managing director (if there is only one) can receive up to 5% of Rs 7,20,00,000 or Rs 36,00,000 as his remuneration (the exact amount depends upon the Articles or the appropriate resolution [...]

By |2016-06-28T10:12:43+00:00June 28, 2016|Calculation of Commission|Comments Off on Calculation of Commission in Final Accounts (With Illustrations)
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