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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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JOB COSTING VS BATCH COSTING Job Costing VS Batch Costing is as follows: BASIS FOR COMPARISON JOB COSTING BATCH COSTING Meaning Job costing refers to a specific costing method, used when the production/work is carried out according to the requirements of customers. Batch costing, is a form of job costing that is applied when the…
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COST SHEET VS PRODUCTION ACCOUNT Cost statement may be presented in the form of ledger account termed as “production account”. Production account presents information of production cost in an analytical manner according to double entry system. Cost of production and profit can be computed in this ledger. Cost Sheet Vs Production Account is as follows:…
Traditional Costing Vs ABC Costing The difference between Traditional costing vs ABC costing is as follows: BASIS OF DIFFERENCE TRADITIONAL COSTING ACTIVITY BASED COSTING MEANING Traditional costing is the allocation of factory overhead to products based on the volume of production resources consumed. The Activity-Based Costing (ABC) is a costing system, which focuses on activities performed to produce…
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DIFFERENCE BETWEEN ALLOCATION AND APPORTIONMENT OF OVERHEADS The difference between Allocation and Apportionment of overheads is as follows: ALLOCATION OF OVERHEADS Allocation is the process of identification of overheads with cost centers. An expense which is directly identifiable with a specific cost centre is allocated to that centre. Thus it is allotment of a whole…
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DIFFERENCE BETWEEN TIME RATE SYSTEM AND PIECE RATE SYSTEM BASIS OF DIFFERENCE TIME RATE SYSTEM PIECE RATE SYSTEM MEANING Time rate system is a method of wage payment to workers based on time spent by them for the production of output. Piece rate system is a method of wage payment to workers based on the…
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MANAGEMENT AND BUSINESS ADMINISTRATION Management and Business Administration are the two terms that are used interchangeably and synonymously. Management refers to the art of getting things done through others. Administration refers to the function of determining the corporate policy and supervising the overall functioning of the concern. Various viewpoints discussed regarding these two terms are…
QUICK RATIO AND CURRENT RATIO The difference between Quick Ratio and Current Ratio is as follows: BASIS OF DIFFERENCE QUICK RATIO CURRENT RATIO RELATIONSHIP It establishes the relationship between Liquid assets and current liabilities. It establishes the relationship between current assets and current liabilities. ASSESSMENT It assesses the ability to meet current liabilities immediately. It…
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…
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DIFFERENCE BETWEEN TRANSACTION AND EVENT Before understanding the difference between transaction and event, one must clearly understand the two concepts. TRANSACTION Transaction refers to any exchange of goods and services on cash or credit basis by the business with the outside parties i.e. other business or customer. Transaction is an economic activity. It has an…
