Unit Price Contract – Meaning, Factors, Advantages, and Disadvantages
What do we Understand by a Unit Price Contract?A Unit Price Contract is a popular form of contract with maximum use in the field… Read Article
Types of Costing
Incentive Contract: Meaning, Types, Advantages, Disadvantages and More
Incentive Contract: MeaningAn incentive contract is a contract between two parties in which one party promises to grant an additional remuneration to another party… Read Article
Cost Plus Contract: Meaning, Types, Advantages, Example, and More
Cost Plus Contract: MeaningAn agreement between two parties whereby one party promises to reimburse the other party for the costs incurred and any additional… Read Article
Lump-Sum Contract: Meaning, Advantages, Disadvantages and More
Lump-Sum Contract: MeaningA lump-sum contract is a legal contract where the contractor promises to complete the whole project at a pre-agreed price. In other… Read Article
Throughput Accounting
What is Throughput Accounting?“Throughput” is the rate at which a corporation converts its goods, services, and other offerings into sales and makes money out… Read Article
Acceleration Claims – Meaning, Types, Issues, and More
As the name suggests, Acceleration Claims refer to the claim for costs to speed up or accelerate the work. Such claims are common in… Read Article
Cost Accumulation: Meaning, Types, and More
Cost Accumulation: MeaningCost Accumulation is the process of collecting all costs information about the business with the help of the cost accounting system. It… Read Article
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… Read Article
Batch Level Costs
What are Batch Level Costs?Batch level costs are costs that are attributed to a batch or bunch of items. It is not possible to… Read Article
Backflush Costing – Meaning, Process, Drawbacks and More
Backflush Costing or backflush accounting is a product cost accounting approach that is very different from the traditional costing system. Under this system, the… Read Article
Target Costing – Meaning, Process, Benefits and More
Target Costing is a management technique that assists a business in deciding the prices based on external factors. These factors include competition, the presence… Read Article