07/04/2020
Absorption, over absorption and under absorption of overheads
According to CIMA, absorption of overhead means “the process of absorbing all overhead costs allocated or apportioned over a particular…
Read BBA, BMS, B.Com Syllabus wise Notes
According to CIMA, absorption of overhead means “the process of absorbing all overhead costs allocated or apportioned over a particular…
Overhead allocation is the apportionment of indirect costs to produced goods. It is required under the rules of various accounting…
Overheads can be classified on the basis of number of characteristics. The following are the important basis of overhead classification:…
Direct expense is an expense incurred that varies directly with changes in the volume of a cost object. A cost…
There are various methods of absorption of factory overhead. Some of the methods are briefly explained below. Production Unit or…
Unit or output costing is that method of costing in which cost are ascertained per unit of a single product…
Cost pertaining to a cost centre or cost unit may be divided into two portions direct and indirect. The indirect…
The following methods are used in separation of such costs into fixed cost and variable cost. They are: 1. Industrial…
Cost Accounting is a branch of accounting, which has been developed because of the limitations of Financial Accounting from the point…
Cost center includes a production or service location, function, activity or plant item in relation to which costs are determined. It…