Nature of Accounts and its meaning
We can say that by nature there are only five accounts in the world and thousands of accounts must be related to any one of…
Accountancy Notes
Income Difference – Variable and Absorption Costing
Variable Costing (CM Approach) Only variable costs of production are charged to WIP and expensed via COGS when the goods are sold (includes DM, DL,…
Tax Systems
Professor John Palmer states that when we developed the Law of Diminishing marginal returns, we simplified our analysis by concentrating on just two inputs…
Utilitarianism Consequentialism
Introduction — Kotchian values consequences (protection of jobs and investment in company) over potential violation of duty (responsibilities of government officials to uphold…
Activity Based Costing
Goal of ABC: to establish a better cause-effect relationship between products and overhead costs Traditional Costing: § Costs are divvied up based on the allocation…
Standard Costing – Alternative Costing Systems
Standard costing: Based on standard (budgeted) values rather than on actual results. Static budget: Used for standard costing. Created in an income statement format that…
Alternative Costing Systems
Actual vs. Standard Costing: – Standard costing is base on budgets Full Costing (Absorption) vs. Variable Costing: -Differs in the treatment of fixed overhead –…
Cost Accounting – Review
Product costs: – Costs that can be attributed to the generation and delivery of individual products – Also called “inventoriable” costs and are capitalized in…
COSTS OF QUALITY
The term quality has many meanings. Quality can mean that a product has many features not found in other products; it can mean that it…
Costs of Internal and External Failure
The costs of not meeting design specifications are classified as internal failure costs and external failure costs. Defects that are detected internally result in costs…