Cost Variance analysis is control system that is developed by organizations to detect and correct variance from expected level in Inventory costs. Variance analysis is usually associated with derived difference between actual cost and the standard cost defined by organization for good output. There can be multiple factors contributing to form these variances like, Difference… Read More »
Standard costing is an important aspect of cost accounting.Standard costs are usually associated with company’s cost of direct material, Consumables, Direct labor and overhead. Rather than taking actual cost of direct material, Consumables, Direct labor and overhead many companies prefer taking expected or standard cost in their books of accounts. By adopting standard costing method,… Read More »
An inventory valuation allows a company to provide a monetary value for items that make up their inventory. Inventories are usually the largest current assets of any business, and proper measurement of them is necessary to assure accurate financial statements. If inventory is not properly measured, expenses and revenues cannot be properly matched and a company… Read More »