management accounting

Bases for determining transfer prices

Transfer pricing is the setting of the price for goods and services sold between controlled or related legal entities within an enterprise. For example if the subsidiary company sells goods to the parent company the cost of those goods paid by the parent to the subsidiary is the transfer price.

Bases for determining transfer price

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11 advantages of standard costing.

Standard costing is managerial control technique that facilitates a comparison of standard cost and revenue with actual results to obtain variance that are used to stimulate improved performance.

The following are advantages of standard costing:

  • It provides yard stick against which actual are measured.
  • It helps in valuing the closing stock.
  • It helps in fixing
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7 differences between job costing and process costing.

Job costing may be defined as a system of costing in which the elements of cost are accumulated separately for each job or work order undertaken by an organization. Industries which manufacture products or render services against specific orders use job costing or job order method of cost accounting.

Process costing is a form … Read the rest

Revision question on how to calculate break-even point and margin of safety.

Bonne Bia limited is a newly formed company in the catering business founded by Kate and Paul Johnson. Kate and Paul have considerable experience in the food industry and saw an opportunity to establish a food/beverage business to service the tourist market during the four months from May to August. The business will be located in Wexford and permission has … Read the rest

ISA 250 - All you need to know

Environmental cost – meaning

Various organization has come up with different definition of the term environmental cost. So there is no definitive answer to question “what is meant by environmental costs? In most cases the term is taken to mean any cost that have relevance to the environment.

The following are perhaps the most significant environmental costs:

  • Image and relationship costs. The environment is
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