Predetermined Overhead Rate

A business calculates a predetermined overhead rate based on estimated overhead and activity levels in order to be able to apply overhead to its product costs.

Predetermined Overhead Rate October 9th, 2017Team
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Incremental Analysis Approach

Make or buy, sell or process further, keep or drop, accept or reject a special order, and repair or replace are all examples of decisions which can made using the incremental analysis approach. The technique considers only relevant costs when a business needs to make a choice between alternative options.

Incremental Analysis Approach October 2nd, 2017Team
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Process Costing in Cost Accounting

Process costing is used when a business operates a continuous production line with a sequence of production processes to manufacture indistinguishable units of product.

Process Costing in Cost Accounting July 7th, 2017Team
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Byproduct Accounting

Immaterial waste products arising from a production process are known as byproducts or by-products. The products are usually accounted for in a non-GAAP manner using either the production method or the sales method. The production method recognizes the value of the byproduct when it is produced, and the sales method recognizes the value when the byproduct is sold.

Byproduct Accounting July 5th, 2017Team
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Overhead Apportionment Calculator

The overhead apportionment calculator, sometimes referred to as a cost apportioning calculator, can be used to apportion up to eight overhead types between six departments or cost centers.

Overhead Apportionment Calculator November 6th, 2016Team
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Cost Apportionment of General Overhead

Cost apportionment is the process of distributing general overheads to cost centers or departments. An appropriate base quantity such as floor area or kilowatt hours is used to calculate the apportioned overhead.

Cost Apportionment of General Overhead November 6th, 2016Team
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CVP Income Statement

A CVP income statement rearranges the traditional format to show variable expenses, contribution margin, and fixed expenses allowing a business to make cost volume profit decisions.

CVP Income Statement November 6th, 2016Team
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Product and Period Costs

A business needs to separate period and product cost as product costs are included as part of the inventory until the product is sold, whereas period costs are treated as an expense in the income statement in the period in which they are incurred.

Product and Period Costs November 6th, 2016Team
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