Cost Accounting

cost-accounting definition

Cost Accounting Definition – Introduction to Cost Accounting

Cost Accounting can be defined as a system put in place by the management to generate the amount incurred in the production of goods and services so as to determine the cost of production and profit generated in the organization. NB: Profit in an organization is determined by the relationship between revenue and cost. If …

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EOQ

EOQ – Definition & Assumptions of Economic Order Quantity

What is Economics Order Quantity (EOQ)? This is the re-order quantity where the total relevant cost of inventory is minimized. EOQ is also known as optimal re-order quantity. It also the ordering quantity at which the control cost ordering is minimized. See also, Inventory Control Summary. Subscribe to our YouTube channel so as not to …

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Contract Costing

Contract Costing – Format for Notional Profit

In this summary, you will learn the definition of the term Contract Costing, The Characteristics and Problems associated with a Contract, Terminologies in Contract Costing, Accounting for Contracts and the Format for Calculating Notional Profit. What is Contract Costing Contract Costing is a form of specific order costing method used for a project which takes …

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Overhead Costs

Overhead Costs Definition – What is Overhead Costs?

Overhead costs are those costs that cannot be traced directly to the level of activities of an organization. The overhead cost can be further described as “the cost of indirect materials, indirect labor, and indirect expenses”. Subscribe to our YouTube channel so as not to miss a tutorial video.   What are Indirect Costs? Indirect …

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mct

Question on Marginal and Absorption Costing Technicques

 Questions on Marginal Costing Techniques Your name Nig. Ltd presents you with the following data about its operations for the quarter ended 31/12/2015 Selling price per liter N50 Direct material per liter N20 Direct labor per liter N15 Variable production overhead per liter N5 Fixed production overhead cost N600,000 Other fixed costs N100,000 Sales commission per liter N3 Quantity sold 180,000 liters Closing …

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