Idle Capacity: That part of practical activity which cannot be utilized and beyond management control Mainly due to lack of demand, non-availability of materials, shortage of labour, seasonal nature of product and lower sales expectancy Idle capacity is the difference between the practical capacity and the capacity based on sales expectancy. It is therefore the … Read more
(Print this article in pdf.format) Whether in bookkeeping and or accounting, the accounting student must know the different types of accounting assumptions, principles and constraints. Below are tabulate in easy reference for those who want to have a quick review of these accounting concepts/principles,assumptions and constraints. ( PS:-You can print the article here or and … Read more
(Print this article in pdf.format) In bookkeeping and accounting, a trial balance is a must. Below are some guidelines and simple snapshots for students to take note of Trial Balance. ( PS:-You can print the article here or and go to the REVISION NOTES category or DOWNLOAD FREE E-BOOKS category to print more of these … Read more
(You can print this article in pdf format) Every accounting student needs to really understand the most basic accounting concept or principle which is the system of double entry and the accounting equation Below are some guidelines and simple snapshots for students to take note of what accountant means by double entry system and accounting … Read more
In cost accounting, besides looking at marginal and total costing, we have the activity-based costing where the stages or process involves the following: Different stages/steps in activity-based costing are: Identify the different activities within the organization Relate the overheads cost to the identified activities Support activities are then spread across the primary activities Determine the … Read more
A cost driver: Is any factor whose change causes a change in the total cost of a related cost object. Hence a change in the level of cost driver will cause a change in the level of the total cost of a related cost object. Examples of cost driver used in the following business units: … Read more
(Print this article in PDF format) Every accounting student needs to go through the stage of preparing final accounts from the Trial balance and dealing with ADJUSTMENTS in Final Accounts. Below are some guidelines and simple snapshots for students to take note of when preparing and adjusting items in Final Accounts. Students should aim at … Read more
Cost allocation: Is the allotment of whole item of cost to a cost centre or a cost unit. It is the process of identifying, assigning or allowing cost to a cost centre or a cost unit Whereas Cost absorption: Is the process of absorbing all indirect costs or overhead costs allocated to or apportioned over … Read more
Cost Ledger Control Account is: Is popularly known as the “General Ledger Adjustment Account. This account is opened in Cost Ledger to complete double-entry. All items of income and expenditure taken from the financial accounts and all transfers from cost accounts to financial books are recorded in this account All transactions in the cost ledger … Read more
ABC analysis is a technique commonly used in stock control or management. This technique allows us to exercise varying degree of control over different items of stock based on the investment involved and the value. Features of ABC analysis include the following: Divided normally into three(3) categories according to their importance in term of value … Read more