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Standard Cost: Meaning, Determination and Advantages

After reading this article you will learn about:- 1. Meaning of Standard Cost 2. Determination of Standard Costs 3. Advantages. Meaning of Standard Cost: It is the pre-determined cost of a product. After compiling different expenses, an estimated cost of product is forecasted, which is known as “Standard cost”. It is used as a device […]

Costing: Meaning, Aims and Methods | Cost Accounting

After reading this article you will learn about:- 1. Meaning of Costing 2. Aims of Costing 3. Methods 4. Advantages. Meaning of Costing: Costing has been defined by the Institute of Cost and Works Accountants, England as: “The technique and process of ascertaining costs.” Whereas, Wheldon has defined the costing as: “Costing is the classifying, […]

Cost Types: 8 Main Types of Costs

Since there are large number of determinants which influence the cost. These determinants vary from situation to situation, and enterprise to enterprise. Therefore for taking a decision about any such determinants, we must analyse them thoroughly. In order to take write deci­sions, it is necessary to understand different costs. Some of them are explained hereunder: […]

How to Keep Control over Elements of Cost?

To earn good profits, it is essential to keep control over each and every ele­ment of cost, such as: 1. Control on Prime Cost 2. Control on Overheads 3. Control on Indirect Materials and Tools. 1. Control on Prime Cost: Prime cost of a product has great role over the total cost. It consists of […]

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