What is prime cost?
i-ask! | Have a question? Ask Tutor! What is Prime Cost? What costs are included in prime costs? Prime cost is a sum of all the direct costs i.e. prime cost is the aggregate of all such costs that can...
View ArticleWhat is conversion cost?
i-ask! | Have a question? Ask Tutor! What is Conversion cost? What costs are included in conversion costs? Conversion cost is the sum of all such costs that are incurred in converting one article into...
View ArticleWhat is meant by direct overheads? Does allocated overheads mean direct...
i-ask! | Have a question? Ask Tutor! What are direct overheads cost? And how they are different from indirect overheads? I just want to make sure whether direct overheads are such overheads which are...
View ArticleWhat is meant by Allocation of overheads?
i-ask! | Have a question? Ask Tutor! What is allocation of overheads? Why we differentiate between usual division of overheads and allocation of overheads? And how can we allocate overheads? While...
View ArticleWhat is meant by Apportionment of overheads?
i-ask! | Have a question? Ask Tutor! What is meant by apportionment of overheads? Why don’t we just allocate all the overheads among different departments? Also explain how apportionment is different...
View ArticleWhat is the difference between Cost and Expense?
i-ask! | Have a question? Ask Tutor! What is the difference between cost and expense? Is it justified that we can make cost vs expense comparison? How much is it important to make distinction between...
View ArticleWhat is the difference between revenue, income, profit, gain and return?
i-ask! | Have a question? Ask Tutor! Can you please differentiate between the terms revenue, income, profit, gain and return with examples? How they are different? Also mention the differences in...
View ArticleWhat is Notional cost?
i-ask! | Have a question? Ask Tutor! What is notional cost? Please explain it simply and also tell me that if notional costs are imaginary costs then why do we even need to calculate them? Notional...
View ArticleWhat is the difference between Notional cost and Opportunity cost?
i-ask! | Have a question? Ask Tutor! Are notional and opportunity cost the same? If they are different then what is it? Please explain notional cost vs opportunity cost differences from cost and...
View ArticleWhat is Opportunity cost and why is it a Relevant cost as well?
i-ask! | Have a question? Ask Tutor! First of all make me clear about opportunity cost. Clarification with one example will be good. Also tell me the relation of opportunity costs and relevant costs...
View ArticleCan direct costs be fixed and indirect costs be variable costs?
i-ask! | Have a question? Ask Tutor! Can direct costs be fixed costs and indirect costs be variable costs also? Most of the time direct costs are variable and indirect costs are fixed in nature but...
View ArticleWhat is the difference between Product cost and Period cost?
i-ask! | Have a question? Ask Tutor! What is the difference between Product cost and Period cost. Please also provide examples for period costs and product costs. Product costs or Inventoriable costs...
View ArticleIs ‘Cost of goods sold’ a Product cost or a Period cost?
i-ask! | Have a question? Ask Tutor! How should we classify cost of goods sold? Is it inventoriable cost or period cost? I’m confused about classification of cost of goods sold. Please explain the...
View ArticleIs depreciation expense a fixed cost or a variable cost?
i-ask! | Have a question? Ask Tutor! Is depreciation expense or depreciation cost is fixed cost or variable cost in nature? Can it be semi-variable or step cost? Please explain with relevant examples...
View ArticleWhat are different inventory valuation methods?
i-ask! | Have a question? Ask Tutor! How many inventory valuation methods are there in total? Can you list all of those methods which are used to value stock of the entity? There are numerous valuation...
View ArticleWhat is NIFO inventory valuation method?
i-ask! | Have a question? Ask Tutor! What is NIFO inventory valuation or costing method or to value material issue price in financial and cost accounting? NIFO – Next in, First out is an inventory...
View ArticleWhat is meant by ‘net of’ in accounting or tax and other business related...
i-ask! | Have a question? Ask Tutor! What is the meaning of term “net of” in accounting? It appears often in accountancy books and financial statements as well as in accounting standards, taxation and...
View ArticleWhat is Depreciation?
i-ask! | Have a question? Ask Tutor! What is depreciation of fixed asset or non current asset for the year? Please explain it briefly so that I can remember easily. I am new in financial accounting so...
View ArticleWhat is Cost classification and in how many ways can we classify cost?
i-ask! | Have a question? Ask Tutor! What are the different types of cost or classifications of cost? And why we really classify cost in so many ways? Cost classification is a simple process in which...
View ArticleWhat is Idle time and its accounting treatment?
i-ask! | Have a question? Ask Tutor! What is idle time and how is it treated in the books of account especially the cost accounting books of the company. Also please discuss how inefficiency and idle...
View ArticleWhat is Continuous stocktaking?
i-ask! | Have a question? Ask Tutor! What is continuous stocktaking and why is it used? How company maintain such procedure and briefly highlight its benefits Stocktaking is simply physical checking or...
View ArticleWhat is meant by Cost?
i-ask! | Have a question? Ask Tutor! What is the meaning of cost? How do you define term cost alone without attaching it to any other concept? Cost is the monetary amount of resources or the...
View ArticleWhat is Cost accounting?
i-ask! | Have a question? Ask Tutor! What is cost accounting and why we need such type of accounting? Are other types of accounting not enough for decision making purposes? Cost accounting is a process...
View ArticleWhat is work in process or work in progress inventory?
Work in process inventory is such asset that is still in the process of completion and not yet ready to be categorised as finished goods.In a manufacturing concern raw materials are converted to...
View Article
