Learn about the applications of Marginal Costing:- 1. Cost control 2. Profit Planning 3. Performance evaluation 4. Fixation of selling price 5. Selection of most profitable product mix 6. Make or Buy decision 7. Shut down or continue decision 8. Effect of changes in selling price 9. Level of activity planning 10. Product Diversification 11. Sell or Further Process Decision [...]
Everything you need to know about Costing Methods. Learn about - Job Order Costing, Process Costing, Operating Costing, Output Costing, Multiple Costing and Batch Costing. Job costing is the basic costing method applicable to those industries where the work consists of separate contracts, jobs or batches each of which is authorized by a specific order or contract. For example, Contract [...]
Cost audit is, however, a preventive measure. It acts as a check on expenditure. It is a barometer of efficiency of performance. It is also a guide to managerial decisions. The objectives of cost audit is to ensure the correctness of accounts, records and statements and to prepare a report on the basis of records. Some of the objectives of [...]
For ascertaining cost, following types of costing are usually used. 1. Uniform Costing, 2. Marginal Costing 3. Standard Costing and variance analysis 4. Historical Costing 5. Direct Costing and 6. Absorption Costing.