Author: commerceiets

IMPORTANCE OF EQUIVALENT PRODUCTION IN VALUING WORK IN PROGRESS

June 1, 2023June 1, 2023 commerceiets No Comments

IMPORTANCE OF EQUIVALENT PRODUCTION IN VALUING WORK IN PROGRESS EQUIVALENT PRODUCTION Equivalent Production represents the production of a process in terms of completed units. In other words, it means converting the incomplete production units into its equivalent of complete units. In each process an estimate is made of the percentage completion of any work-in-progress. A production schedule…

COST ACCOUNTING

COST PLUS CONTRACTS IN CONTRACT COSTING FROM VIEWPOINT OF BUYER AND MANUFACTURER – ADVANTAGES AND DISADVANTAGES

May 31, 2023June 1, 2023 commerceiets No Comments

COST PLUS CONTRACTS IN CONTRACT COSTING Cost plus contract is a contract in which the value of the contract is ascertained by adding a certain percentage of profit over the total cost of the work. This is used in case of those contracts whose exact cost cannot be correctly estimated at the time of undertaking…

COST ACCOUNTING

EMPLOYER LIABILITY TO PAY COMPENSATION UNDER WORKMEN COMPENSATION ACT 1923

May 31, 2023May 31, 2023 commerceiets No Comments

EMPLOYER LIABILITY TO PAY COMPENSATION UNDER WORKMEN COMPENSATION ACT 1923 The Workmen’s Compensation Act 1923 was introduced in India in 1923 as first social security of workmen and to protect the interests of the workmen. This Act is based on the theory that: “The cost of Product should bear the blood of the workmen.” SCOPE…

INDUSTRIAL AND LABOUR LAWS

Calculation of Profits in Contract Costing – 5 cases explained

May 29, 2023May 29, 2023 commerceiets No Comments

Calculation of Profits in Contract Costing The contracts may be complete or incomplete contracts. Profits are calculated in both cases differently which is as follows: ASCERTAINMENT OF PROFITS ON COMPLETED CONTRACTS Profit on Completed Contracts: In case of contracts completed during the accounting year, the contract price, whether payable in lump sum on the completion…

COST ACCOUNTING

Escalation clause in Contract Costing, Importance with Example – detailed explanation

May 18, 2023February 28, 2025 commerceiets

Meaning of escalation clause in Contract Costing An escalation clause in a contract is a provision that allows for adjustments to the contract price based on specified circumstances or factors. It is commonly used when there is a possibility of increased costs during the contract period due to factors beyond the control of either party….

COST ACCOUNTING

Methods of Cost Accounting and their Adaptability in different industries- Best explanation

May 17, 2023May 17, 2023 commerceiets No Comments

Methods of Cost Accounting and their Adaptability in different industries Different methods of costing are applied for ascertaining unit cost in different industries based on the nature of operation and unit of finished product involved. Basically, there are two methods of costing viz., Job Costing and Process Costing. Job costing is applied to special order…

COST ACCOUNTING

Objectives of Cost Accounting

May 17, 2023May 17, 2023 commerceiets No Comments

Meaning of Cost Accounting Cost Accounting is an art or process of recording, analyzing and classifying of expenditure for the purpose of product costing or service costing, ascertainment of profitability, operational planning and cost control. It is a forward-looking approach which is related to the recording, analyzing and classifying of expenditure with the objective of…

COST ACCOUNTING

“Cost Accounting is becoming more and more relevant in emerging scenario in India” – Best answer

May 16, 2023May 16, 2023 commerceiets No Comments

“Cost Accounting is becoming more and more relevant in emerging scenario in India”- This statement is very true. Cost accounting is indeed becoming increasingly relevant in the emerging scenario of India. Several factors contribute to this growing significance: In conclusion, the emerging scenario in India, characterized by increasing competition, global integration, regulatory compliance, and emphasis…

COST ACCOUNTING

Explain Nature and Advantages of Cost Accounting – Best 10 points

May 16, 2023May 16, 2023 commerceiets No Comments

Nature and Advantages of Cost Accounting Cost Accounting is an art or process of recording, analyzing and classifying of expenditure for the purpose of product costing or service costing, ascertainment of profitability, operational planning and cost control. It is a forward-looking approach which is related to the recording, analyzing and classifying of expenditure with the…

COST ACCOUNTING

While Financial Accounting is external Cost Accounting is internal to the business – best explanation

May 12, 2023May 12, 2023 commerceiets No Comments

While Financial Accounting is external Cost Accounting is internal to the business. Discuss The distinction between financial accounting and cost accounting lies in their focus and audience. Financial accounting is primarily concerned with providing financial information to external stakeholders, such as investors, creditors, regulatory bodies, and the general public. On the other hand, cost accounting…

COST ACCOUNTING