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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 and a cost schedule will then be…
BY- PRODUCTS The by products is a secondary product, which incidentally results from the manufacture of a main product. By products are also produced from the same raw material and same process operations but they are secondary results of operation. The main difference between the joint product and byproduct is that there is no intention…
JOINT PRODUCTS Joint products imply that they are produced from the same basic raw material, are comparatively of equal importance, are produced simultaneously by a common process and may require further processing after the point of separation. ACCORDING TO CHARTERED INSTITUTE OF MANAGEMENT ACCOUNTANTS, LONDON “Joint products is two or more products separated in the…
The description of Process Costing and Job Costing is as follows: PROCESS COSTING Process costing is that aspect of operation costing which is used to ascertain the cost of the product at each process or stage of manufacture. This method of accounting used in industries where the process of manufacture is divided into two or…
PROCESS COSTING VS JOB COSTING Process Costing vs Job Costing is as follows: JOB COSTING Job costing or job order costing also called specific order costing is a method of costing which is used when work is undertaken as per the customer’s special requirement (tailor-made). ACCORDING TO INSTITUTE OF COST AND MANAGEMENT ACCOUNTANTS, LONDON “Job…
PROCESS COSTING Process Costing is that aspect of operation costing which is used to ascertain the cost of the product at each process or stage of manufacture. This method of accounting used in industries where the process of manufacture is divided into two or more processes. The objective of process accounting is to find out…
JOB COSTING VS CONTRACT COSTING The difference between Job Costing VS Contract Costing is as follows: BASIS OF DIFFERENCE JOB COSTING CONTRACT COSTING MEANING Job costing is a system used for completion of specific customer orders where each unit produced is considered a job. Contract costing is a costing system where work is undertaken according to…
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CONTRACT COSTING Contract costing is also known as Terminal Costing. It is one form of application of the principles of job order costing. Contract Costing is a type of costing used in constructional activities such as construction of buildings, roads, bridges etc. The person who takes contract for a price is called the Contractor and…
In this post you will learn about Types of Demand on various basis. Understand the topic and make good notes of this topic: Types of demand TYPES OF DEMAND Demand for a commodity is the willingness of the buyer to buy the commodity at a specific price for a specified period of time. The various…
ASSIGNMENT Assignment Problem is a special type of linear programming problem where the objective is to minimize the cost or time of completing a number of jobs by a number of persons. The assignment problem in the general form can be stated as follows: “Given n facilities, n jobs and the effectiveness of each facility…
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