Businesses use different costing methods to value their products. In this article, we are going to highlight the similarities and…
In Process Costing, the processes often produce more than one type of product. The products produced in addition to the…
Definition – Abnormal gain If the actual loss is less than expected/normal loss or if the actual output is more…
Definition – Abnormal loss When the actual loss is more than the expected loss or when the actual output is…
Definition Process costing is a method applied in manufacturing industries where output is continuously produced. It is also called continuous…
Definition The amount of profit that a business expects to achieve in an accounting period is called target profit. After…
What is margin of safety? Margin of safety refers to the expected sales that are more than the break-even point.…
Definition – Break-even analysis Break-even analysis is the method used to calculate the break-even point of the business. It is…
Definition Cost-volume-profit analysis or CVP analysis is the determination of changes in costs and profits due to changes in volume.…
Relevant cost of labour is the future incremental cash outflows of hiring and training new labour and/or opportunity cost of…