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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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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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BATCH COSTING Batch Costing is that form of specific order costing under which each batch is treated as a cost unit and costs are accumulated and ascertained separately for each batch. Each batch consists of a number of like units. In this system, a group of identical units, comprising of a batch is used as…
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 costing is that form of specific order costing which applies where work is…
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:…
COST SHEET FORMAT Cost sheet is a device used to determine and present the cost under unit costing. Cost sheet format is a statement of costs incurred at each level of manufacturing a product or service. In a Cost sheet all the elements of cost is taken into consideration. It includes Prime cost, Factory/manufacturing cost,…
UNIT COSTING Unit costing refers to the costing procedure, under which costs are accumulated and analyzed under different elements of cost and then cost per unit is ascertained by dividing the total cost by number of units produced. It is ideally used in case of concerns producing a single article on large scale by continuous…
RECONCILIATION OF COST AND FINANCIAL ACCOUNTS Reconciliation of Cost and Financial Accounts: When cost accounts and financial accounts are separately maintained in two different sets of books, two profit and loss accounts will be prepared—one for costing books and second for financial books. The profit or losses shown by the cost accounts may not agree…
