Joint Products – Meaning, Characteristics and Accounting
Joint products are the products or items that use the same production process and input at the same time. Since they use the same… Read Article
Types of Costing
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 organization assigns costs based on broad averages rather than… Read Article
Angle of Incidence – Meaning, Importance And More
The Angle of Incidence in accounting occurs when the entire sales line crosses the cost line from below in the break-even chart. Or, it… Read Article
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… Read Article
Sunk Cost – Meaning, Dilemma, Examples, And More
What is the Sunk Cost?The cost that a company has already incurred and can’t be recovered is known as Sunk Cost. These costs are… Read Article
Contribution Analysis – Importance, Uses, Calculation And More
Contribution Analysis is useful in understanding the effect of direct and variable costs on the net income. Simply saying, such an analysis helps a… Read Article
How THROUGHPUT Helps Remove Bottleneck And Maximize Profit?
Meaning of ThroughputThroughput is the amount of product or service that passes through a production process during a period of time. It is also… Read Article
Absorption vs Variable Costing
The difference between absorption costing vs variable costing methods pertains mainly to the allocation of fixed manufacturing costs. As a result, they pose a… Read Article
Product Costing
Definition / MeaningProduct costing is not an absolute term having a permanent definition. The definition of product costing varies with the purpose behind costing… Read Article
Break Even Point
Break-Even Point DefinitionThe Break-even point (BEP) is the level of production where the company’s total revenues and expenses are equal. At the BEP, the… Read Article
Marginal Cost – How to Calculate, Relationship with Fixed & Variable Cost
You would agree that when a manufacturing unit increases the level of production, the total cost of production will also increase. This increment in… Read Article