RETURN TO GLOSSARY INDEX Factory overhead These are all the costs incurred during the manufacturing process, minus the costs of direct labor and materials. Financial ledger A book in which financial accounts are kept First in first out The earliest materials purchased are used first. The price paid for those earliest materials is used to … Read more
RETURN TO GLOSSARY INDEX Economic order quantity The amount of purchases which should be made at any one time to minimize the total costs of stock Efficiency ratio Actual production in standard hours divided by actual number of hours worked. The result is expressed as a percentage Equivalent units Partly completed units expressed as equivalent … Read more
RETURN TO GLOSSARY INDEX Differential cost The difference in the cost between two alternatives. Also known as incremental cost Direct costs All costs that can be directly traced to a product. Includes direct material cost, direct labor cost and direct expenses. Direct costing This is a costing methodology that only assigns direct labor and material … Read more
RETURN TO GLOSSARY INDEX Capacity ratio Actual number of hours worked divided by budgeted standard hours. The ratio is expressed as a percentage Carrying costs Costs incurred in keeping stocks such as storage costs, insurance and cost of money tied up in stocks. Common costs Also known as joint costs. They are costs incurred prior … Read more
RETURN TO GLOSSARY INDEX Basic standard The standard that remains unaltered for many years ad so does not represent current conditions Batch A cost unit which contains a group of identical products Batch costing A method of costing which is used where products are made in batches containing a number of identical products Bill of … Read more
RETURN TO GLOSSARY INDEX Abnormal losses Unexpected losses arising due to abnormal conditions Absorption costing A costing technique whereby all normal costs of running a business, which comprises both fixed and variable costs are charged to the cost unit produced Actual costs Historical costs or costs already incurred Activity based costing (ABC). This is a … Read more
Consolidated Financials are prepared in accordance with the following IFRS and IAS: IAS 27 “Consolidated Financial Statements” IAS 28 “Accounting for Investments in Associates” IAS 31 “Financial Reporting of Interest in Joint-Ventures” IAS 39 “Financial Instruments: Recognition and Measurement” IFRS 3 “Business Combinations” IAS 39 – Financial Instruments: “Recognition and Measurement” All financial assets and … Read more
Consolidated Financials are prepared in accordance with the following IFRS and IAS: IAS 27 “Consolidated Financial Statements” IAS 28 “Accounting for Investments in Associates” IAS 31 “Financial Reporting of Interest in Joint-Ventures” IAS 39 “Financial Instruments: Recognition and Measurement” IFRS 3 “Business Combinations” IAS 31 Financial Reporting of Interests in Joint Ventures Jointly controlled entities … Read more
Consolidated Financials are prepared in accordance with the following IFRS and IAS: IAS 27 “Consolidated Financial Statements” IAS 28 “Accounting for Investments in Associates” IAS 31 “Financial Reporting of Interest in Joint-Ventures” IAS 39 “Financial Instruments: Recognition and Measurement” IFRS 3 “Business Combinations” IAS 28 :Accounting for Investments … Read more
Consolidated Financials are prepared in accordance with the following IFRS and IAS: IAS 27 “Consolidated Financial Statements” IAS 28 “Accounting for Investments in Associates” IAS 31 “Financial Reporting of Interest in Joint-Ventures” IAS 39 “Financial Instruments: Recognition and Measurement” IFRS 3 “Business Combinations Consolidation According to IAS 27: Consolidated Financial Statements A subsidiary is defined … Read more