This article throws light upon the top four categories for classification of cost. The categories are: 1. Classification of Cost by Nature or Element 2. Functional Classification of Cost 3. Classification of Cost on the Basis of Behaviour 4. Classification of Costs for Managerial Decisions and Control. Classification of Costs: Classification of Cost by Nature or Element Functional Classification of [...]
This article throws light upon the top three methods of costing. The methods are: 1. Job Costing 2. Process Costing 3. Multiple Costing. Method # 1. Job Costing: Job costing is system of costing in which costs are ascertained in terms of specific job or order which are not comparable with each other. The unit of costing in this method [...]
This article throws light upon the five major difficulties faced during the installation of a costing system. The difficulties are: 1. Lack of Support from Top Management 2. Resistance from the Existing Staff 3. Non-Co-operation at Other Levels 4. Shortage of Trained Staff 5. Heavy Costs. Difficulties in Installation of a Costing System: Lack of Support from Top Management Resistance [...]