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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

COST ACCOUNTING IS AN INDISPENSABLE TOOL OF MODERN MANAGEMENT – BEST HIGHLIGHT OF THE STATEMENT

May 12, 2023May 12, 2023 commerceiets No Comments

COST ACCOUNTING IS AN INDISPENSABLE TOOL OF MODERN MANAGEMENT The statement “Cost accounting is an indispensable tool of modern management” highlights the importance of cost accounting in contemporary business operations. Cost accounting provides vital information and analysis that enables effective decision-making, resource allocation, and performance evaluation within an organization. Let’s discuss the nature and scope…

COST ACCOUNTING

MEANING AND SCOPE OF COST ACCOUNTANCY BEST NOTES

May 9, 2023May 12, 2023 commerceiets No Comments

MEANING AND SCOPE OF COST ACCOUNTANCY Cost accountancy is a specialized field of accounting that focuses on analyzing, managing, and reducing business costs. According to the Institute of Cost and Management Accountants London “Cost accountancy is the application of costing and cost accounting principles. Methods and techniques to the science, art and practice of cost…

COST ACCOUNTING

OBJECTIVES AND ADVANTAGES OF COST ACCOUNTING – DETAILED EXPLANATION

March 25, 2023February 10, 2025 commerceiets

OBJECTIVES AND ADVANTAGES OF COST ACCOUNTING COST ACCOUNTING Cost Accounting is an art or process of recording, analysing 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, analysing and classifying of expenditure with the…

COST ACCOUNTING