Tag Archives | Techniques

Difference between Absorption Costing and Marginal Costing

Everything you need to know about the difference between absorption costing and marginal costing. Absorption costing is a total cost technique in which total cost (i.e., fixed and variable) are charged to products. It is often argued that absorption costing is an orthodox or traditional method and that marginal costing is the correct technique. Marginal costing differs from absorption or [...]

By |2019-08-29T07:07:18+00:00August 29, 2019|Difference Between|Comments Off on Difference between Absorption Costing and Marginal Costing

What is Standard Costing?

Everything you need to know about standard costing. Standard costing is a technique of cost control. The CIMA Official Terminology defines it as "a control technique which compares standard costs and revenues with actual results to obtain variances which are used to stimulate improved performance." Standard cost is a planned cost for a unit of product, component or service produced [...]

By |2019-08-29T07:06:38+00:00August 29, 2019|Standard Costing|Comments Off on What is Standard Costing?

Budget Types: Types of Budgets in Accounting

The following points highlight the types of budgets used in accounting. The types are: 1. Sales Budget 2. Production Budget 3. Materials Budget 4. Labour Budget 5. Overhead Budget 6. Research and Development Budget 7. Capital Expenditure Budget 8. Cash Budget 9. Master Budget 10. Flexible Budget. Type # 1. Sales Budget: In the budgeting process, sales is a starting [...]

By |2018-06-18T11:02:00+00:00June 18, 2018|Budgeting|Comments Off on Budget Types: Types of Budgets in Accounting
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