Batch Costing is used where articles are produced in batches and held in stock for assembly of components to produce finished products or for sale to customers. Costs are collected against each batch. When the batch is completed cost per unit is computed by dividing total cost by the number of units in each batch. Batch Costing is used for [...]
Budgetary control is a system whereby the budgets are used as a means of planning and controlling costs. Budgeting lays down as to what is to be attained and how it is to be attained while control ensures that the objectives are realised and actual results do not deviate from the planned course more than necessary. CIMA has defined budgetary [...]
Contract costing is defined as that form of specific order costing wherein work is carried out in accordance with the customer's special requirement and each order is of long duration. Contract costing is generally applied by contractors who undertake constructional work and engineering work like roads, dams, buildings, canals, railway lines, bridges, sewerage system of a city or town, hospital, [...]