Labour can be direct as well as indirect. Direct labour is that which can be charged to specific cost units directly. Indirect labour is one the direct allocation of which is not possible. If wages can be allocated to different jobs or products on a convenient basis and are paid to workers engaged directly in the fabrication of products, the [...]
Some of the most popular costing techniques are as follows:- 1. Historical Costing 2. Uniform Costing 3. Marginal Costing 4. Absorption Costing 5. Direct Costing 6. Incremental Costing and 7. Standard Costing (i) Historical Costing: As the name suggests, under this method first the expenditure is incurred and then it is recorded and accounted for calculating cost of production per [...]
Everything you need to know about the limitations of Cost Accounting: -1. It is Expensive 2. The system is more complex 3. Not suitable for small organisations 4. Lack of social accounting 5. Not an exact science 6. Not applicable in all types of industries 7. Results are not dependable 8. Results are not trustworthy 9. Merely a system of [...]