STUDY TO ENLIGHTEN YOURSELF
INCENTIVE PLANS FOR EMPLOYEES Incentive Plans for employees are the plans formulated to influence and motivate the workers to achieve the set targets to get the reward. The incentive is given to the worker by paying some bonus or premium in addition to their normal wages. Under an incentive plan, normally a standard time is…
Read More “INCENTIVE PLANS FOR EMPLOYEES” »
STORE LEDGER Store ledger is maintained under Perpetual Inventory system by costing office and deals with the quantities and values of materials received, issued and balance in hand. It is an assemblage of cards or sheets, which are maintained to keep a record of quantity and cost of material received, transferred and remained in stock….
MEANING Bin card is the record maintained under the perpetual inventory system by the stores department and shows the quantities of materials received, issued and balance in hand after each receipt and issue. It is also known as stock card or bin tag. Bin Card helps to monitor the total inventory process. This card is…
PRICING OF MATERIALS Pricing of materials refers to valuation of materials issued by the stores department for the production process. Pricing of materials should be done by adopting the method which is suitable for nature of materials and business itself. The methods applied for pricing of materials are as follows: 1.COST PRICE METHOD Cost price…
Read More “PRICING OF MATERIALS” »
MEANING Perpetual Inventory System refers to a system of maintaining such records as will reflect the receipts, issues and balance of all items of materials in store all the times. It is a material control technique. ACCORDING TO ICMA (Institute of Cost and Management Accountants), UK “Perpetual Inventory System is a system of records maintained…
Read More “PERPETUAL INVENTORY SYSTEM” »
MATERIAL CONTROL IN COST ACCOUNTING PDF Material control is a system which ensures the provision of the required quantity of materials of the required quality at the required time with the minimum amount of capital investment. It can be defined as safeguarding of company’s property in the form of inventory and maintaining it at the…
Read More “MATERIAL CONTROL IN COST ACCOUNTING PDF” »
TYPES OF COST There are various types of cost which can be classified on various bases such as element, nature, variability or behavior, controllability etc. Cost refers to the expenditure incurred on producing the goods and services. It represents the sacrifice, foregoing or a release of something of value. ACCORDING TO ICMA (Institute of Cost…
ELEMENTS OF COST The elements of cost are the factors on the basis of which expenditure is incurred. It may be defined as a group name of smaller costs of identical nature. Elements of cost make the analysis of the cost easy and facilitate maximum information regarding costs to the manufacturers. COST Cost refers to…
Read More “ELEMENTS OF COST” »
DIFFERENCE BETWEEN COST ACCOUNTING AND FINANCIAL ACCOUNTING The difference between cost accounting and financial accounting is as follows: 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…
Read More “DIFFERENCE BETWEEN COST ACCOUNTING AND FINANCIAL ACCOUNTING” »
SCOPE OF COST ACCOUNTING PDF This post contains the Scope of Cost Accounting Pdf file 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…
Read More “SCOPE OF COST ACCOUNTING PDF” »