Acceleration Claims – Meaning, Types, Issues, and More
Acceleration Claims as the name suggests referring to the claim for costs to speed up or accelerate the work. Such claims are common in construction or real estate projects. …
Costing Terms
Preventive Costs – Meaning, Examples, Types and More
Preventive costs, as the name suggests are the costs that a company incurs to prevent defects from occurring in a product or service. For example, a company investing in …
External Failure Cost – Meaning, Examples and More
External failure cost is one of the three types of cost of quality. It includes the cost a company incurs after a defective product or service reaches the customer …
Target Profit Pricing: Meaning, Methods, Examples, Assumptions and More
Target Profit Pricing, is a strategy that tells the management the total units to be sold to achieve the targeted profit for a particular period. Under this strategy, after …
Internal Failure Costs – Meaning, Examples and More
Internal failure cost is one of the four types of costs of quality. Three other costs are -preventive costs, appraisal costs, and external failure costs. Internal failure costs, as …
Cost Accumulation: Meaning, Types, and More
Cost Accumulation is the process of collecting all costs information about the business with the help of the cost accounting system. It is a process of collection of all …
Cost Center – Meaning, Importance and Limitations
Meaning of a Cost Center? The Cost Center is a department or a distinct unit or division within the framework of a company. These cost centers indirectly contribute to …
Job Costing – Meaning, Benefits, Process and More
Job Costing is the method of determining costs, including materials, labor, and overheads for a project, or any specific orders from a customer. Such an approach helps to trace …
Computer Integrated Manufacturing (CIM) – Meaning, Objectives and More
What is Computer Integrated Manufacturing? When an organization manage their manufacturing or production using computers, it is called Computer Integrated Manufacturing (CIM). In CIM, machines and automation systems control …
Diseconomies of Scale
Diseconomies of Scale-Meaning Diseconomies of scale happen when the size of the company or firm increases so large that the cost per unit increases. Once the production crosses a …
