Everything you need to know about the key differences between absorption costing and marginal costing. Absorption costing is a total cost technique in which total cost (i.e., fixed and variable) are charged to products. It is often argued that absorption costing is an orthodox or traditional method and that marginal costing is the correct technique. Marginal costing differs from absorption [...]
Everything you need to know about standard costing. Standard costing is a technique of cost control. The CIMA Official Terminology defines it as "a control technique which compares standard costs and revenues with actual results to obtain variances which are used to stimulate improved performance." Standard cost is a planned cost for a unit of product, component or service produced [...]
In this article we will discuss about:- 1. Meaning and Definition of Budgetary Control 2. Objectives of Budgetary Control 3. Essentials 4. Advantages 5. Limitations. Meaning and Definition of Budgetary Control: Budgetary control is the process of preparation of budgets for various activities and comparing the budgeted figures for arriving at deviations if any, which are to be eliminated in [...]