Costing Terms

Variance Analysis Report

What is Variance Analysis Report? Variance Analysis Report is useful to identify gap between the planned outcome (The Budgeted) and the actual outcome (The Actual). The gap between Budget …

Product Costing

Definition / Meaning Product costing is not an absolute term having a permanent definition. The definition of product costing varies with the purpose behind costing a product. A product …

Activity Based Costing

What is Activity Based Costing (ABC)? Activity Based Costing (ABC) is a 2 step method of costing whereby costs are first allocated to ‘identified activities’ of a business and …

Break Even Point

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 BEP, the revenue of the …

Types of Inventory / Stock

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 …