Inventory Costing
Meaning of inventory costing Inventory means goods- be it complete or even incomplete, for sale, or for own use of a business entity at any point in time. It …
Costing Terms
Collusive Pricing – Meaning, Types, Drawbacks and More
Collusive pricing or price collusion is a scenario when several companies agree to set the price of the good or service unanimously. Their objective could be to earn more …
Budgeted Cost – Meaning, Process, BCWS and More
Budgeted cost is an estimate of the expenses that a company expects to spend going ahead. Or, we can say it is the expenses that management estimates to pay …
Cost Behavior – Meaning, Importance, Types and More
Cost Behaviour is the change in the behavior of a cost (or costs) due to a change in business activity. The study of this change is the cost behavior …
Peanut-butter Costing – Meaning, Example, Drawbacks and More
Peanut-butter costing is one of the methods of assigning indirect/overhead costs. Under this method, the organisation assigns costs based on broad averages, rather than in a proper and targeted …
Cost-Based Pricing – Meaning, Types, Advantages and More
Cost-Based pricing (or the mark-up pricing) as the name suggests, is a method to set the price of the goods or services based on the cost. Under this, we …
Cost Object – Meaning, Advantages, Types and More
A Cost Object is anything for which a cost is to be calculated or that makes you incur a cost. It could be anything for which a company plans …
Cost Allocation – Meaning, Importance, Process and More
Cost Allocation or cost assignment is the process of identifying and assigning costs to the various cost objects. These cost objects could be those for which the company needs …
Material Requirements Planning (MRP) – All You Need To Know
Material Requirements Planning or MRP is an inventory management system that uses a computer and software. This tech-based system works backward from customer orders. It answers three questions – …
Price Variance – Meaning, Calculation, Importance and More
Price Variance is the difference between the actual price and the standard price of a product or service. It can be for both cost and revenue. Meaning this variance …
