Costing Terms
This Category is dedicated to articles related to Costing Terms.
Break-Even Point Definition Break-even point is the level of production where the total revenues and total expenses of the company are equal. At the break-even point, the revenue of …
Meaning of Inventory Management Inventory Management is a practice of tracking and controlling the inventory orders, its usage and storage along with the management of finished goods that are …
5 Basic types of inventories are raw materials, work-in-progress, finished goods, packing material and MRO supplies. Inventories are also classified as merchandise and manufacturing inventory. Other such classifications on …
Relevant range is a level of volume or activity within which a company is expected to operate. All the budgeting and costing exercise are conducted with relevant range as …
Relevant costs are defined as the costs that arise in future and are different for different alternatives. The concept of relevant costs are used by management for making various …
Differential Cost or Incremental Cost is the difference in total relevant cost between two alternatives. Commonly, these alternatives are ‘make or buy’, ‘two different level of activity’, etc.
Marginal Cost is the additional cost that is incurred for producing one additional unit of product. One of the classifications of cost divides all cost between fixed, semi-variable and …
Cost, costing, cost accounting and cost accountancy are normally used interchangeably but they are not synonyms of each other. The meaning of these terms is related and similar but …
Costs can be classified based on functions or activities in an organization. All the costs of a business can be classified into production costs, administration costs, finance costs, selling …
The material, labor and expenses is the common way of classifying costs of any manufacturing business based on the nature of cost. All the costs incurred can be classified …
