Daily Archives: November 6, 2019

Marginal Costing and Absorption Costing difference

The marginal costing is a technique of an accounting which may be defined as, “the ascertainment of cost by differentiating between fixed cost and variable cost of marginal cost and of the effect on profits of changes in the volume of the type of output”. Marginal costing distinguishes between fixed …

Read More »

Cost Object – Definition

cost object definition

A cost object is anything for which a separate measurement of costs is desired. Examples include a product, a service, a project, a customer, a brand category, an activity and a department. Manufacturing departments are either considered as cost pools of cost objects, depending upon whether management’s focus is on …

Read More »

Myth about depreciation

It is most important to realise that the depreciation concept is not designed to provide a means or method to replace ageing assets. Depreciation is not intended to be a ‘savings-scheme’ by which the company can fund purchases of new assets. Many non-accountants believe that depreciation creates a fund which …

Read More »