Work in Progress – Meaning, Importance, Accounting And More
Work in Progress or WIP, as the name suggests are the goods that are not complete and are at some stage of production. The item is inclusive of entire …
Costing Terms
Types of Cost Accounting
There are four major types of cost accounting: Standard cost accounting, Activity-based cost accounting, Marginal Cost Accounting, Lean Accounting.
Marginal Benefit – Meaning, Importance And More
Marginal Benefit is the maximum amount that a consumer can pay for consuming an additional unit of a product or a service. In simple words, the extra utility that …
Fixed Cost – What It Is And What’s Its Importance
Fixed cost as the name suggests is the expense that does not change very frequently and is recurring. For instance, a company will have to pay a fixed rent …
Selling, General and Administrative Expenses – All You Need To Know
Selling, general and administrative expenses (or SG&A) is the total of both direct and indirect selling expense in addition to the administrative expenses. The company records these expenses on …
Overhead Costs – Types, Importance And More
Overhead are the business costs that are crucial for the day-to-day running of the business, but one can’t attribute these costs to particular business activity. Also, known as indirect …
Sunk Cost – Meaning, Dilemma, Examples And More
The cost that a company has already incurred and can’t be recovered is known as Sunk Cost. These costs are often irrelevant while considering a new investment or any …
Contribution Analysis – Importance, Uses, Calculation And More
Contribution Analysis is useful in understanding the effect of direct and variable cost on the net income. Simply saying, such an analysis helps a company understand the importance of …
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 …
Throughput – Helps You To Remove Bottleneck And Maximize Profit
Throughput is the amount of product or service that passes through a production process during a period of time. It is also called the flow rate and measures the …
