Prime Cost

Prime Cost

Prime cost is the combination of a manufactured product’s costs of direct materials and direct labor. In other words, prime cost refers to the direct…
Normal Spoilage is Planned Spoilage – Explanation

Normal Spoilage is Planned Spoilage – Explanation

Normal Spoilage is Planned Spoilage – Normal spoilage refers to the inherent deterioration of products during the production or inventory processes of the sales sequence.…
Basis of Apportionment of Overheads

Basis of Apportionment of Overheads

The basis of Apportionment of Overheads Cost allocation is the assigning of a common cost to several cost objects. For example, a company might allocate…
Characteristics of Job Order Costing

Characteristics of Job Order Costing

Job costing is one of the methods of costing. It is also known as job order costing. In this system, work is undertaken to customer’s…
Distinguish between Job Costing and Contract Costing

Distinguish between Job Costing and Contract Costing

Job costing and contract costing both are the methods of costing and used when we receive specific order for performing any work. But after this,…
Economic Batch Quantity (EBQ)

Economic Batch Quantity (EBQ)

Economic batch quantity (EBQ) also called optimal batch quantity or economic production quantity is a measure used to determine the number of units that can…
Distinguish between Job Costing and Batch Costing

Distinguish between Job Costing and Batch Costing

Job costing is one of the methods of costing. It is also known as job order costing. In this system, work is undertaken to customer’s…
Allocation and Apportionment of Overheads

Allocation and Apportionment of Overheads

Allocation and Apportionment of Overheads Overheads are common costs incurred for the benefits of a number of costs centers or cost units. Therefore, they cannot…
Classification of Overhead

Classification of Overhead

Overhead is those costs required to run a business, but which cannot be straight attributed to any particular business activity, product, or service. A manufacturing…
Basic Features of Contract Costing

Basic Features of Contract Costing

Contract costing is a way of providing a quotation for especially large and long term projects that will usually be performed over a number of…
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