In this article we will discuss about the treatment of special items of overheads in cost accounts. Material Handling Expenses: These expenses are incurred while unloading the raw materials received from supplier, storing the raw materials, handling the raw materials to work place, handling of work-in-progress, storage of finished goods etc. It also includes costs incurred for weighing salaries of [...]
The below mentioned article provides a note on scrap. Scrap is the residue material that has a recovery value. It is incidental residue from the materials used in manufacturing operations which is recoverable and measurable without processing. Accounting of Scrap: The accounting treatment of scrap is based on the following considerations: (a) If the value of the scrap is negligible, [...]
The below mentioned article provides a note on defectives. Defectives represent the part of production that does not meet dimensional or quality specifications of a product but which can be reworked by additional application of material, labour and/ or processing and made it into saleable condition either on first or seconds depending upon the characteristic of the product. Causes for [...]