Cost Accounting

Overheads

Definition Every form of production involves two types of costs-Direct costs and indirect costs. Direct costs are those expenses which are identified and allocated to particular cost centers or cost units. Prime cost is the sum total of direct expenses like direct material, direct labour and changeable or direct expenses. Read more…

By Vishnu S Manoj, ago
Cost Accounting

Cost, Cost Centre & Cost Unit

As per the definition by Institute of cost and management accountants (I.C.M.A), now known as Chartered Institute of management accountants (C.I.M.A), London, “cost” is the amount of: Actual expenditure incurred on a given thing; and Notional expenditure attributable to a given thing. Cost is the value of economic resources used Read more…

By Vishnu S Manoj, ago
Cost Accounting

Process Costing

Products of certain industries have to pass through various well defined and distinct stages of production before they become fully finished products ready for sale. The method of costing used to ascertain the cost of such product at each stage of manufacture is called process costing. A process is an Read more…

By Vishnu S Manoj, ago
Finance

Ratio Analysis

A quantitative tool used for gaining insight into a company’s liquidity, operational efficiency, and profitability by comparing the information contained in its financial statements, This is what Ratio analysis is. Advantages of Ratio Analysis It simplifies complex accounting statements and financial data into simple ratios, this makes the process of Read more…

By Vishnu S Manoj, ago