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Total cost/ full cost which include
Prime Cost
*Direct Labour cost
*Direct Material Cost
*Direct expenses
Production Overhead
*Variable Overhead
*Fixed Overhead
Selling and Distribution cost
Administration Cost
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Fundamental accounting equation?
One fundamental accounting equation is the same for business. Variable cost plus fixed costs equals total costs. This will help accountants when they are pricing products.
How to calculate total variable cost per unit?
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
What is an absorption costing?
An absorption costing is an accounting method used to calculate the total cost of a product by factoring in both direct and indirect costs.
What is overhead in accounting?
Overheads costs are indirect manufacturing costs which are not directly allocatable to units of products.
What is the difference between cost accounting and advance accounting?
ADVANCED ACCOUNTING covers accounting operations, patterns, merger of public holding companies, foreign currency operations, changing financial statement ... Cost accounting: A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance Type your answer here...
Is Economic profit is found by subtracting accounting costs from total revenue?
yes
Economic profit is found by subtracting accounting costs from total revenue?
True
How do you calculate the cost per unit?
Vague question. Here's my attempt. Simple cost is an accumulation of input costs. It is important to include all costs. i.e.(time, material, overhead). It can be actual costs or replacement costs. That gets into pricing, accounting, taxation, and banking. I recommend looking in financial accounting and cost accounting to see which fits best. A general rule: Total manufacturing costs/ total produced units
Fundamental accounting equation?
One fundamental accounting equation is the same for business. Variable cost plus fixed costs equals total costs. This will help accountants when they are pricing products.
Difference between accounting profit and economist's profit?
The accounting profit is the difference between total revenue and total cost excluding the economic cost (opportunity cost) of owner-supplied resources such as time and capital. At the other hand, In the economic cost, we include the opportunity cost in our calculations. · When total revenue exceeds both explicit and implicit costs, the firm earns economic profit. · Economic profit is smaller than accounting profit Another answer culed be: Economic Profit is slightly different than accounting profit, which merely the firm's total revenues minus its total costs. Economic profit is defined as total revenues minus total operating costs minus opportunity cost. Opportunity cost is defined as the cost of the profits you forgo by not doing another activity. For example the opportunity costs of opening a lemonade stand is equal to the difference between the accounting profits of the lemonade stand minus the accounting profits of a more profitable hot dog stand.
How to calculate total variable cost per unit?
Easiest way: Total costs per unit - fixed costs per unit = variable cost per unit. Also recatting into accounting.
What are the stages of accounting for costs?
direct costs,indirect costs,sunk costs, Activity based costing.
What is the accounting treatment for IPO costs?
The accounting treatment for transaction costs are as deductible for equity range. Since the IPO is defined as the first issuance of equity. Accounting also treats transactions of cost for IPO as a merger accounting method.
What is the difference between an economic cost and accounting cost?
Economic costs look refers to a combination of accounting costs(Explicit costs),Implicit costs and opportunity costs. Accounting costs only considers financial and costs incurred or agreed to be payed in order to produce a good or a service.
Are depreciation charges implicit cost?
yes, depreciation is an implicit cost. but this implicit cost is added to total costs in calculating accounting profits.
What is an absorption costing?
An absorption costing is an accounting method used to calculate the total cost of a product by factoring in both direct and indirect costs.
What is the cost accounting in service organization?
Accounting that categorizes costs at different job units
