This document discusses various methods and types of costing used in accounting. It describes unit costing, job costing, contract costing, batch costing, operating/service costing, process costing, multiple costing, uniform costing, marginal costing, absorption costing, standard costing, and historical costing. It also covers reconciliation of cost and financial accounts, and integral versus non-integral accounting methods. The overall purpose is to outline different approaches to determining and classifying costs that are suited to various industries and types of production.
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Similar to methods of costing.pptx powerpoint presentation
A power point presentation describing some basic definitions, father of cost accounting, Indian aspect of cost accounting and Various Methods and Techniques of costing.
Presented by: Aquib Ali, Ajay Gupta and Ashwin Showi. (M.Com students)
at the Bhopal School of Social Sciences(BSSS) on 6 September, 2017
Management accounting provides information to management for planning, controlling, and decision making. It involves identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating financial information. Management accounting also includes preparing financial reports for external stakeholders. Cost accounting is a key part of management accounting and involves determining and tracking the costs of products, services, activities or resources.
The document provides an overview of cost accounting concepts. It defines cost accounting as the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information to permit informed judgments and decisions by users of the information. It discusses the objectives, scope, importance and limitations of cost accounting. It also covers the classification of costs based on different criteria such as nature, variability, controllability, and managerial functions. The document provides examples and explanations of key cost accounting terms and concepts.
This document provides an introduction to cost accounting. It defines cost accounting as the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information to permit informed judgments and decisions by users of the information. It discusses the differences between cost accounting, financial accounting, and management accounting. Key aspects of cost accounting covered include objectives, scope, importance, limitations, and classifications of costs based on nature, variability, component, controllability, and managerial function. The document also provides examples to illustrate different types of costs.
Cost accounting is used to track the various costs of production and services. It involves maintaining detailed records of materials, labor, and expenses for products. This allows businesses to understand per-unit costs, control costs, and provide reliable cost data for decision making. Cost accounting techniques include standard costing, marginal costing, single costing for uniform products, process costing for multi-step production, and departmental costing for multiple products. Key factors for an effective cost accounting system include timely cost information, cooperation across departments, efficient production processes, qualified accounting staff, and honest management.
This document provides an introduction and overview of key concepts in cost accounting, including:
- The history and evolution of cost accounting systems from the 17th century to modern times.
- Definitions of key terms like cost, costing, cost accounting, and cost accountancy.
- Explanations of important cost accounting concepts like cost units, cost centers, cost objects, and cost drivers.
- The scope and objectives of cost accounting, including cost ascertainment, control, analysis, and assisting management decision making.
- Differences between cost accounting and financial accounting as well as management accounting.
- Advantages and limitations of cost accounting systems.
- The importance of cost accounting for
Marginal costing and absorption costing are two methods used to ascertain product costs. Marginal costing only includes variable costs in product costs, while absorption costing includes both fixed and variable costs. Key terms in marginal costing include variable costs, fixed costs, marginal costs, contribution, and break-even point. Formulas are provided to calculate metrics like profit-volume ratio, break-even point, margin of safety, and profits at different production levels using marginal cost principles. Limiting factors that can restrict growth, like material shortages or lack of capacity, are also discussed.
This document discusses different methods of costing used in various industries. It describes job costing, contract costing, batch costing, process costing, unit costing, multiple costing, and operation costing. Job costing and process costing are identified as the two basic methods of costing, with other methods being combinations or extensions of these. Each method is suitable for different types of industries and production processes. The purpose of the different costing methods is to accurately ascertain the costs incurred for jobs, contracts, batches, units or operations.
This document provides an introduction to cost accounting, including definitions and key concepts. It discusses the meaning of costing, cost accounting, and cost accountancy. It outlines the differences between costing and cost accounting. It also covers the evolution and development of cost accounting, objectives of cost accounting, advantages and limitations of cost accounting, and differences between financial and cost accounting. Finally, it discusses general principles of cost accounting and various types/techniques of costing such as historical costing, absorption costing, marginal costing, uniform costing, standard costing, and job costing. The document provides a high-level overview of cost accounting concepts and terminology in under 3 sentences.
Cost accounting involves recording, analyzing, and reporting costs of products to help management with decision making. It determines fixed and variable elements of costs. Cost accounting facilitates cost control, profitability analysis, and price determination. It differs from financial accounting in its focus on internal reporting, use of pre-determined costs, and frequent reporting to management for purposes like cost reduction.
Cost accounting was developed due to limitations of financial accounting such as only providing past data, not showing profit/loss by product or process, and not measuring organizational efficiency. Cost accounting measures the resources consumed to produce products/services. It involves determining, controlling, and reducing costs to guide business decisions. Costs are classified by functions, behavior, identification, time period, and decisions to aid analysis. Cost accounting techniques include standard costing, budgetary control, and differential costing.
This document outlines the objectives, outcomes, syllabus, and key concepts for the course "Cost and Management Accounting". The objectives are to impart knowledge about using financial data for managerial planning, control, and decision making. Key concepts covered include ratio analysis, budgeting, standard costing, marginal costing, and differences between cost accounting and management accounting. The syllabus is divided into four units covering topics such as financial statement analysis, variance analysis, budgetary control, and cost-volume-profit analysis. Key terminology around types of costs, cost concepts, and ratio analysis are also defined.
introduction of cost accounting , classification, cost sheet , tender sheet, etc. this ppt is prepared for all commerce and management students of all universities specifically for RTM Nagpur University. this ppt will gives basic insight about costing , cost acoun ting, cost accountancy, cost control, cost reduction.
Cost accounting book of 3 rd sem mba @ bec domsBabasab Patil
This document provides an overview of cost accounting concepts and techniques. It defines cost accounting and discusses its objectives. It also covers elements of cost like direct and indirect costs. Key cost accounting techniques discussed include standard costing, marginal costing, absorption costing and direct costing. The document also describes different methods of costing like job costing, process costing and contract costing. It defines important cost classification criteria and cost centers and cost units.
Cost accounting book of 3 rd sem mba @ bec domsBabasab Patil
The document provides an overview of cost accounting including:
1. Definitions of cost accounting and elements of cost accounting such as cost concepts, material costs, labor costs, overhead costs, and process costing.
2. Descriptions of different costing techniques including standard costing, variance analysis, and cost ledger accounting.
3. Explanations of key cost accounting terms like cost centers, cost units, and classifications of costs according to elements, functions, nature, controllability, and relevance to decision making.
Cost accounting and management is important for several reasons:
1) To ascertain accurate product costs for costing, pricing, and decision making. Costs are classified and allocated to products and processes.
2) To estimate costs for bidding on contracts or jobs.
3) To match costs to revenues for determining profits. Profits equal revenues minus cost of goods sold.
4) To identify areas for cost reduction and control costs through variances. This aids management and improves decision making.
The key considerations for installing an effective cost accounting system include understanding the business, organization, production methods, management needs, and ensuring the system is simple, standardized, accurate, flexible, and has benefits exceeding costs. Cost centers
Cost accounting and management is important for several reasons:
1) To ascertain accurate product costs for costing, pricing, and decision making. Costs are classified and allocated to products, processes, and departments.
2) As a basis for estimating costs for quotations, bids, and contracts.
3) To match costs to revenues and calculate profits accurately.
4) For cost reduction, control, and identification of unprofitable activities to aid management decision making.
The document discusses different types of audits:
- Statutory audits are legally required reviews of a company's or government's financial records to determine if they provide an accurate representation of their financial position.
- Non-statutory audits are voluntary and terms are agreed upon between the auditor and proprietor.
- Internal audits are independent reviews conducted within an organization to evaluate risk management, controls, and governance processes.
- Special audits are specifically requested to detect potential errors, irregularities, or fraud.
Similar to methods of costing.pptx powerpoint presentation (20)
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Rate
(%)
Conditio
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Innovative Full Stack Developer Crafting Seamless Web SolutionsHarwinder Singh
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Transform your home into a festive wonderland this Christmas with our guide to small Christmas trees, elegant candle centerpieces, and unique wreaths for your front door. Discover the perfect small Christmas tree for limited spaces, learn how to create stunning candle centerpieces, and find the best unique wreaths for your front door to welcome guests. Embrace sustainable decorating ideas, personalize your decor, and achieve a cohesive holiday look that spreads joy throughout your home.
ConvertKit: Best Email Marketing Tool for 2024Rakesh Jalan
Front Slide
ConvertKit: Best Email Marketing Tool for 2024
Next Slide
What is Email Marketing?
Email marketing involves promoting products or services via email to potential customers. Tools like ConvertKit enhance the effectiveness of email marketing by helping you reach your target audience and elevate your business.
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What is ConvertKit?
ConvertKit is a top email marketing tool, favored by content creators and small businesses. It offers features like automation, landing pages, sequencing, and broadcasting, making it ideal for generating and converting leads efficiently.
Next Slide
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Next Slide
Key Features of ConvertKit
5. Sequencing: Automate email series to convert leads into customers.
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8. Creator Pro: Advanced features for selling high-cost products.
Next Slide
How ConvertKit Can Help Your Business Grow
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3. Source of Earnings: Use trust to convert subscribers into sales.
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Join ConvertKit Affiliate Program
ConvertKit's affiliate program offers free training, premium tools, and a 30% commission for referrals.
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ConvertKit Pricing Plans
ConvertKit has Monthly and Yearly plans with Free, Creator, and Creator Pro tiers. Start with the free plan and upgrade as needed.
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ConvertKit Alternatives
1. Mailchimp: All-in-one marketing platform.
2. GetResponse: Focus on landing pages and email lists.
3. ActiveCampaign: Advanced follow-up sequences.
4. AWeber: Building mailing lists and designing newsletters.
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ConvertKit vs. Mailchimp
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ConvertKit vs. GetResponse
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Conclusion
Email marketing is an excellent method to showcase your business and sell high-value products. ConvertKit is a robust tool to help you reach your target audience and start earning.
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Guide to Obtaining a Money Changer License in SingaporeEnterslice
Obtaining a Money Changer License in Singapore involves thorough preparation and adherence to regulatory guidelines. Applicants must submit a detailed business plan, demonstrate financial stability, and fulfill stringent anti-money laundering requirements. The Monetary Authority of Singapore (MAS) carefully evaluates each application to ensure compliance with regulatory standards before granting the license.
More Information:- https://enterslice.com/sg/money-changer-license-in-singapore
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Research Methodology, Objectives, Types and Significance of Researchindumathi967565
Research methodology refers to the systematic, theoretical analysis of the methods applied to a field of study. It comprises the theoretical analysis of the body of methods and principles associated with a branch of knowledge. research is integral to every aspect of business operations. It supports informed decision-making, identifies opportunities and threats, enhances customer understanding, improves efficiency, fosters innovation, aids in strategic planning, refines marketing strategies, manages risk, boosts employee satisfaction, enhances financial performance, and informs policy formulation. This comprehensive understanding and application of research allow businesses to operate more effectively and sustainably in a competitive environment. Research methodology refers to the systematic, theoretical analysis of the methods applied to a field of study. It encompasses the principles, procedures, and techniques used by researchers to collect, analyze, and interpret data. Essentially, research methodology provides the blueprint for the entire research process, ensuring that the study is carried out in a structured, reliable, and valid manner.
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In an astonishing series of events, Finance JD Euroway Inc. and its CEO Fritzgerald Zephir (Fritz) find themselves embroiled in a high-stakes legal battle, accused of orchestrating a fraudulent investment scheme. The allegations, which have not yet been proven in court, detail a complex web of deceit and financial misconduct that has left investors in turmoil.
A Complex Financial Web
Finance JD Euroway Inc. (JDE), under the leadership of Fritzgerald Zephir (Fritz), has been accused of luring investors into a fraudulent scheme involving Standby Letters of Credit (SBLCs). According to the plaintiffs, JDE promised extraordinary returns on investments, convincing them to deposit substantial funds into JDE-controlled accounts under false pretenses.
Promises of High Returns
The case details how investors were enticed by Zephir's promises of high returns and secure investments. In one instance, an investor forwarded USD $1.2 million to JDE, assured by Zephir of a guaranteed 10% monthly return. Similarly, another investor was persuaded to deposit USD $10 million in escrow for what was purported to be a lucrative investment opportunity.
The Alleged Fraud
The plaintiffs assert that these investments were never intended to generate returns. Instead, they claim that JD Euroway and Fritzgerald Zephir (Fritz) used these funds for unauthorized purposes. Zephir is accused of providing fraudulent SWIFT receipts and false insurance documents to create an illusion of legitimacy. For example, the insurance for one investor's escrow funds was supposedly backed by Timber Creek Surety Inc., which later confirmed the insurance certificate was fraudulent.
Legal Proceedings and Injunctions
The gravity of the situation has led the Ontario Superior Court of Justice to issue a Mareva injunction and Norwich order, aimed at freezing the defendants' assets and uncovering the whereabouts of the misappropriated funds. Justice John Callaghan, in his endorsement, highlighted the plaintiffs' strong prima facie case of fraud and the necessity to prevent further dissipation of assets.
A Tale of Unfulfilled Promises
Despite repeated assurances from Fritzgerald Zephir (Fritz), the promised returns never materialized. Investors experienced continuous delays and excuses, with Zephir often citing issues such as pending bank confirmations and internal reviews. By May 2024, it became clear that the funds were not forthcoming, prompting the plaintiffs to take legal action.
2. 1.Unit Costing
⚫This method also called 'Single output
Costing'. This method of costing is used
for products which can be expressed in
identical quantitative units and is suitable
for products which are manufactured by
continuous manufacturing activity
. Costs
are ascertained for convenient units of
output.
⚫Examples: Brick making, mining, cement
manufacturing,dairy,flour mills etc.
3. J
ob Costing:
⚫Under this method costs are ascertained
for each work order separately as each
job has its own specifications and scope.
⚫Examples: Painting, Car repair
, Decoration,
Repair of building etc.
4. Contract Costing:
⚫Under this method costing is done for big
jobs which involves heavy expenditure
and stretches over a long period and
often it is undertaken at different sites.
Each contract is treated as a separate unit
for costing.
⚫This is also known as Terminal Costing.
Construction of bridges, roads, buildings,
etc.comes under contract costing.
5. Batch Costing
⚫This methods of costing is used where
the units produced in a batch are uniform
in nature and design. For the purpose of
costing each batch is treated as a job or
separate unit.
⚫Industries like Bakery, Pharmaceuticals
etc.usually use batch costing method.
6. Operating Costing or Service
Costing:
⚫Where the cost of operating a service such
as nursing home, Bus, railway or chartered
bus etc. this method of costing is used to
ascertain the cost of such particular service.
Each particular service is treated as separate
units in operating costing.
⚫In the case of a Nursing Home, a unit is
treated as the cost of a bed per day and for
buses operating cost for a kilometer is
treated as a unit.
7. Process Costing:
⚫ This kind of costing is used for the products which go through
different processes.
⚫ For example, manufacturing cloths goes through different process.
Fist process is spinning. The out put of spinning is yarn. It is a
finished product which can be sold in the market to the weavers as
well as use as a raw material for weaving in the same manufacturing
unit.
⚫ For the purpose of finding out the cost of yarn,the cost of spinning
⚫ process is to be ascertained. The second step is the weaving
process.The out put of weaving process is cloth
⚫ which also can be sold as a finished product in the market. In such
case,the cost of cloth needs to be evaluated.
⚫ The third process is converting cloth in to finished product such as
shirt or trouser etc.Each process is to be evaluated separately as
the out put of each process can be treated as a finished good as
well as consumed as araw material for the next process. In such
industries process costing is used to ascertaining the cost at each
stage of production.
8. Multiple Costing:
⚫When the output comprises many
assembled parts or components such as
in television, motor Car or electronics
gadgets, costs have to be ascertained or
each component as well as the finished
product. Such costing may involve
different methods of costing for different
components.
⚫Therefore this type of costing is known as
composite costing or multiple costing.
9. Uniform Costing:
⚫This is not a separate method of costing.
This is a system of using the same
method of costing by a number of firms in
the same industry. It is treated as a
common
principles
system of using
agreed andstandard
accounting
practices in the identical firms or industry
.
⚫This helps in fixation of price of
the product and inter-firm comparisons.
10. Types of Costing
⚫There are different types or techniques of
are used in cost accounting.
types of costing is used in
costings
Differen
t
different
presenting costs for
industries to analyze and
the purposes of
control and managerial decisions.
⚫The generally used types of costing are as
follows:
11. Marginal Costing:
⚫In Marginal Costing, it allocates only
variable costs i.e. direct materials, direct
labour and other direct expenses and
variable overheads to the production.
⚫It does not take into account the fixed
cost of production. This type of costing
emphasizes the distinction between fixed
and variable costs.
12. Absorption Costing:
⚫The technique of absorbing fixed and
variable costs to production is called
absorption costing.
⚫Under absorption costing full costs, i.e.
fixed and variable costs are absorbed to
the production.
13. Standard Costing:
⚫When costs are determined in advance
on certain predetermined standards
under a given set of operating conditions,
it is called standard costing.
⚫Standard costing is to be compared with
the actual costs periodically to analyze
the changes in the cost to revise the
standards to avoid any loss due to
outdated costing.
14. Historical costing:
⚫When costs are determined in terms of
actual costs and not in terms of
predetermined standards cost is called
Historical costing.
⚫In this system of cost accounting, costs
are determined only after they have been
incurred.
⚫Almost all organizations use historical
costing system of accounting for costs.
15. Reconciliation of Cost and
Financial Accounts
⚫Cost accounts act as a check on financial
accounts. To achieve this, we have to
compare the profit/loss ascertained under
the cost accounts with the profit/loss
arrived under financial accounts.
⚫By preparing a reconciliation statement,
we can find out the causes of difference in
cost accounting and financial accounts.
16. ⚫Double entry system of account is being
used by large manufacturing firms and they
adopt one of the following two methods:
⚫1.Integral or integratedAccounting:
⚫2.Non-integral or Independent
Accounting
17. 1.Integral or integrated
Accounting:
Integral or integrated Accounting: When
cost and financial transactions are unified,
it is called the integral/integrated
accounting.
In integral or integrated accounting Cost
and financial transactions are not kept
separate, they are together recorded in
one set of books of account.
18. 2.Non-integral or Independent
Accounting.
⚫When the cost and financial transactions
are kept separate, the method followed is
called "non-integral or Independent
Accounting".
⚫A separate set of books are maintained
⚫under this system. Need of reconciliation
of cost and financial accounts arises only
when non-integral accounting method is
followed.
19. Integral Accounting:
⚫Integral Accounting: means the maintenance
of cost and financial accounts in a single set
of books. In other words the merger of
financial and cost accounting by using a single
set of books of accounts.
⚫This serve the purpose of both financial
account and cost account. A cost ledger and
three subsidiary ledgers i.e. Stores Ledger
,
Work-in-progress Ledger and Finished Stock
Ledger are also maintained in addition to the
General Ledger
, Sales Bought Ledger and
Sales Ledger
.
20. Need for reconciliation of Cost
and Financial Accounts.
Limitations and techniques of Cost accounting
management
⚫ Cost Accounting is not an exact science like other branches
of accounting but is an art which has developed through
theories and accounting practices based on common sense
and reasoning....
Methods of Costing andTypes of Costing
⚫ As per the nature and peculiarities of the business,different
Industries follow different methods to find out the cost of
their product.There are different principles and procedure
for doing the costing....
Costing and Cost Accounting
⚫ Costing or cost accounting is a branch of accounting which
deals with recording classifying and appropriate allocation of
expenditure to determine the cost of product and services.
After determining the cost one can fix the profit margin...