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In the LIFO method, production is charged with current market prices and hence pricing of the
production is facilitated, as it reflects the current market prices. LIFO ensures that the product cost is near to market price. Under weighted price method, the rise in prices is spread over a large number of units and therefore its effect is much reduced. And the average price is always less th
Best Study Notes » Cost Accounting
explain why Last in First out (LIFO) is a better method for pricing material
Best Coaching Class Notes by shruti (#2) 226 days ago (Article)
How are defectives treated in accounting terms?
Best Coaching Class Notes by shruti (#2) 226 days ago (Article)
Abnormal Defective :‐ The rectification cost should be charged to costing Profit & Loss A/c.
Normal Defective :
1. Charged to Good Output :‐ The entire cost of rectification of normal defective is charged correctly, then the rectification costs are charged to general overheads
2. Charged to departmental overheads :‐ In case department responsible for such defectives can be correctly iden
Normal Defective :
1. Charged to Good Output :‐ The entire cost of rectification of normal defective is charged correctly, then the rectification costs are charged to general overheads
2. Charged to departmental overheads :‐ In case department responsible for such defectives can be correctly iden
What are the advantages of continuous stock taking?
Best Coaching Class Notes by shruti (#2) 226 days ago (Article)
This refers to the physical checking of stock on a continuous basis. Thus, verification is conducted round the year. Advantages:
1. acts as a moral check on stores staff
2. insists on upto date maintaining of stock records
3. The management can be updated and can take corrective action for any discrepancies, irregularities or charges are detected
1. acts as a moral check on stores staff
2. insists on upto date maintaining of stock records
3. The management can be updated and can take corrective action for any discrepancies, irregularities or charges are detected
What are the main objectives of cost accounting?
Best Coaching Class Notes by shruti (#2) 227 days ago (Article)
1. To ascertain & analyses costs
2. To control costs
3. To reduce costs
4. To fix the Selling Price
5. To prepare Periodic Statements
6. To Provide Information
2. To control costs
3. To reduce costs
4. To fix the Selling Price
5. To prepare Periodic Statements
6. To Provide Information
Controllable costs and Uncontrollable costs
Best Coaching Class Notes by shruti (#2) 227 days ago (Article)
Controllable costs incurred in a particular
responsibility centre can be influenced by the action of the executive heading that esponsibility centre. Whereas Uncontrollable costs are the costs which cannot be influenced by the action of a specified member of an undertaking. Hence, it should be kept in mind that while saying whether a cost is controllable or not, we talk with respect to a certain
responsibility centre can be influenced by the action of the executive heading that esponsibility centre. Whereas Uncontrollable costs are the costs which cannot be influenced by the action of a specified member of an undertaking. Hence, it should be kept in mind that while saying whether a cost is controllable or not, we talk with respect to a certain
Essential factors for installing a Cost Accounting system
Best Coaching Class Notes by shruti (#2) 227 days ago (Article)
1. Objective :‐ whether it is being introduced for fixing prices or for cost control
2. Type of business- to highlight, in significant areas, factors considered important for improving
the efficiency of operations in that area
3. Technical aspects of the concern and the attitude and behaviour
4. The manner in which Cost and Financial accounts could be inter‐locked into a single integral
acc
2. Type of business- to highlight, in significant areas, factors considered important for improving
the efficiency of operations in that area
3. Technical aspects of the concern and the attitude and behaviour
4. The manner in which Cost and Financial accounts could be inter‐locked into a single integral
acc
What are relevant costs ?
Best Coaching Class Notes by shruti (#2) 227 days ago (Article)
Relevant costs represent those future costs that will be changed by a particular decision. While irrelevant costs are those costs that will not be affected by a decision. A particular cost can be relevant in one situation but irrelevant in another, the important point to note is that relevant costs represent those future costs that will be changed by a particular decision, while irrelevant costs
What is Cost accounting? What are its important objectives?
Best Coaching Class Notes by shruti (#2) 227 days ago (Article)
Cost Accounting is defined as “the process of accounting for cost which begins with the
recording of income and expenditure or the bases on which they are calculated and ends
with the preparation of statements and reports for ascertaining and controlling costs." CIMA defines cost accounting as “the establishment of budgets, standard costs actual costs of operation, processes, activities or prod
recording of income and expenditure or the bases on which they are calculated and ends
with the preparation of statements and reports for ascertaining and controlling costs." CIMA defines cost accounting as “the establishment of budgets, standard costs actual costs of operation, processes, activities or prod
Understand Basic Concepts of Costing - MyCoachingHub
Best Coaching Class Notes by admin (#1) 317 days ago (Article)
Free online coaching for CA IPCC Costing from www.MyCoachingHub.com. Learn the basics of Cost Accounting various definitions and more
What is a Budget - Costing - MyCoachingHub
Best Coaching Class Notes by admin (#1) 317 days ago (Article)
Free online coaching for Costing - www.MyCoachingHub.com for CA IPCC. Learn basics and the formulae from a Chartered Accountant.
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