Standard Costing is a crucial topic in cost accounting and is used by almost every company as a yardstick to compare its performance by matching actual versus budgeted. Standard Costing Problems and Solutions In the exam, Standard Variance analysis questions…
This is the system of wage payment under which the worker is paid according to the hours worked. This may be then projected over the daily, weekly and monthly basis. Formula Rate per hour x total hours worked Example Mr…
1.Labour efficiency variance is a part of Material variance Labour variance Overhead variance 2.Efficiency variance arises due to: Change in the rate of pay to labours Change in the price of materials Change in the actual and standard hours 3.Efficiency…
1.Rate variance is a part of Material variance Labour variance Overhead variance 2.Rate variance arises due to: Change in the rate of pay to labours Change in the price of materials Change in the quantity of materials 3.Rate variance is…
We have covered maximum stock level in great detail in our previous post. As we know, in order to get maximum stock level, we need three things, namely: Re-ordering stock level – it is set by the management by analysing the pattern…
In inventory management, maximum stock level plays a vital role for planning and decision making. Without knowing the maximum quantity of any raw material, an entity cannot plan out its production effectively and efficiently. There are numerous Advantages of maximum stock level, some…
In orde to pay the labours, there are two major systems exist which are: time wage system – this is based on the time spent in the factory, no matter work has been done or not. piece rate system –…
Payroll calculations are done over the basis of employee’s attendance which can be obtained through the manual register maintained at the main gate of the company. However, due to misuse of the manual registers, most of the entities are using…
Payroll is a major element of cost in organizations especially the manufacturing one. So, it is not an easy task to reduce this cost. Payroll in cost & management accounting refers to the office staff and labor wages. In manufacturing…
Inventory is a vital part of trading and manufacturing companies. That is why, it is necessary to have accurate information about stock level. If the entity is not keeping up-to-date information about its inventories of raw materials, work in process…