Costing – An Overview

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What is Cost? Cost can be defined as value expended for procuring some resources. In general terms, we can say that the amount we have spent to acquire a particular product is its cost. For instance, Mr. A visits a book store to purchase books and the shopkeeper charges extra money for the bag. Mr. … Read more

Job-Costing System  

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Job costing is one of the accounting practices used to find the cost of a product or service, such as process costing. While process costing is used in manufacturing identical products in large quantities, Job costing is used when the products are distinct and are manufactured in small quantities. It is designed to allocate the … Read more

Management Information System (MIS)

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A management information system (MIS) is a way of gathering information related to the management aspect and appropriately using that information to make decisions to achieve the goals. This acts as a tool for decision-making and helps to make various crucial decisions in the business. This information is not limited to monetary terms but carries … Read more

Labor/Employee Cost

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Employees are crucial assets of an organization. Undoubtedly, the world is rushing towards artificial intelligence, but it can never replace humans. The reason is the logical analysis of situations. But when you read the word labor/employee cost, what comes to mind first? Payments to employees. Basically salary and incentives. But does an employee only cost … Read more

Material Cost

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What is Material Cost?

The word ‘MATERIAL’ in simple terms means all the commodities or components which are used in the process to manufacture a product. Thus, the word ‘Material Cost’ simply means the direct material cost incurred to manufacture a product. It is also known by the name of the cost of direct material and cost of raw material.  The process of identifying the costs of materials required to manufacture a product is Material Costing. Cost Accounting Standard (CAS-6) deals with the Material Cost.

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Elements of Costing

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Elements of Costing: Material Cost Materials are products that are further processed or consumed during the process of manufacturing goods. Stores is a very commonly used synonym of materials, but it has a wider scope as compared to materials. Stores not only includes raw materials but also include other items such as spare parts, maintenance … Read more