Management Accounting
- Accounting
How Is Overhead Cost Charged To Departments
Responsibility for Manufacturing Overhead Cost: As the preceding overhead cost topic indicate, many overhead items are directly chargeable to a…
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Prerequisites Of Responsibility Accounting
Prerequisites of responsibility accounting: Personal Factors in Responsibility Accounting says a program to develop for management accounting controls which must…
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Concept of Responsibility Accounting for Management
Control of factory overhead and concept of responsibility accounting: Responsibility — Defined. Webster’s dictionary defines responsibility or being responsible as…
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Why Organization Should Go For Responsibility Accounting System
Reason why organizations should go for Responsibility Accounting system: Direct materials and direct labor are generally directly identifiable with specific…
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Why Is Cost Consciousness Necessary For Cost Control?
Educational institutions (such as public school systems, colleges and universities) and service organizations (such as hotels, motels, hospitals, and nursing…
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How Spending and Idle Capacity Variance Is Important?
SPENDING AND IDLE CAPACITY VARIANCE ANALYSIS: The $7,000 under-applied factory overhead had been analyzed into a $750 unfavorable spending variance…
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Allocate service department costs to production departments
Allocate service department costs to production departments: Instead of closing all service department overhead directly to producing departments, some overhead…
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Process Of Establishing Departmental Overhead Rates
ESTABLISHING DEPARTMENTAL OVERHEAD RATES: Factory overhead is usually applied on the basis of direct labor dollars or hours when one…
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Characteristics Of Joint Products And Allocation Of Joint Costs
Characteristics of joint products: A great number of products or services are linked together by physical relationships which necessitate simultaneous…
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Method Of Costing By Products And Joint Products
METHOD OF COSTING BY PRODUCTS: The several accepted methods used in industry for costing by-products fall into two categories: (1)…
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