Manufacturing Cost Components

Manufacturing costs are those which relate to the manufacture of a product and consist of three basic manufacturing cost components which are materials, labor, and expenses.

Manufacturing Cost Components September 17th, 2018Team
Read more

Sales Mix and Quantity Variances

The sales volume variance has two components, the sales mix variance and the sales quantity variance. The sales mix variance shows the effect of the difference between the actual and budgeted sales mix. The sales quantity variance shows the effect of the difference between the actual volume sold at the budgeted mix and the budgeted volume.

Sales Mix and Quantity Variances July 18th, 2018Team
Read more

Sales Variance Analysis in Accounting

The total sales variance sometimes referred to as the sales value variance is the difference between the actual sales and budgeted sales and can be split and analysed into the sales volume variance and the sales price variance.

Sales Variance Analysis in Accounting July 16th, 2018Team
Read more

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
Read more

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
Read more

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
Read more

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
Read more

You May Also Like