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Objectives of business:a. Profit: It is the primary goal of any business enterprise. Profit enables a businessman for growth,expansion and survival. b. Growth: It is second important objective where the industry apart from earning…

Concept 1. Meaning of Business: Business may be understood as the organized efforts of enterprises to supply goods and services to consumers for a profit. Concept 2:Purpose of Business: The purpose of business goes beyond earning…

2.8.4 Determination of Economic Batch Quantity The cost per unit decreases with the increase in the size of the batch on account of economies of large scale production. If the industry increases the size of the batch enormously, it might…

2.8.2 Advantages The following are the advantages of batch costing: 1) It ensures optimum capital investment 2) It ensures optimum cost of production per unit 3) It is very suitable to small sized industrial units 4) It enables…

2.8 Batch Costing 2.8.1 Meaning and definition 2.8.1. Meaning Batch costing is a variant of Job Costing. This method is applicable under the following situations: production is done in lots/batches containing a certain number of units.…

2.7 Advantages and disadvantages of Job Costing 2.7.1 Advantages of Job Costing 1) Costs of jobs can be calculated in advance and this helps in quoting prices. 2) Different costs such as material, labour and overheads can be analyzed and…

2.6 Applications Job costing is a method that enables an industry to pre-determine the cost, add the required profit and quote the selling price before manufacturing.Job costing is applicable in the following industries: 1) Machine…

2.5 Objectives 1) To calculate the cost and profit/loss in terms of every job or order and enable the management to take appropriate decisions based on the judgement of each job’s profitability. 2) To value the work-in-progress of each…

2.4 Features 1) Production is undertaken only against order. Therefore, there is neither production in anticipation of demand nor production for stock purposes. 2) Each job is different in terms of materials required, labour required,…