MEIS was introduced in the Foreign Trade Policy (FTP) for the period 2015-2020. The MEIS was launched as an incentive scheme for the export of goods. The rewards are given by way of duty credit scrips to exporters. The MEIS is notified by the DGFT (Directorate General of Foreign Trade) and implemented by the Ministry … Read more
Indirect cost is those costs that cannot be directly assigned to/related to/identified with a particular cost center or cost object, but they benefit multiple cost objects. It is not possible to calculate them for a single cost object. However, it needs to be apportioned over various products as well as among the different departments of … Read more
A cost that is easily attributable to a cost center is known as Direct Cost. When all the direct costs are taken together they are known as prime costs. Example: Direct Material, Direct Labor, Direct Expenses. The cost that can be directly attributable to/identified with/ associated with the specific cost center or cost object like … Read more
Budget is a blue print of future course of action and activities. Budget means expressing the future course of action of an organization in quantitative terms. Budgeting can be defined as the process of planning and anticipating costs and expenditure of various financial resources on projects. It is the process of making specific financial plans … Read more
A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise’s financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, … Read more
When the cost items cannot be directly charged to or accurately traceable to a particular cost center, then such items of cost are prorated amongst various cost centers, on an equitable basis, this process is known as cost apportionment. It is the distribution of different items of cost in proportions to the cost unit or … Read more
Allocation of cost, implies the entire distribution of the overhead item to the departments on a logical basis. It represents that part of cost attribution, which charges a particular cost to a cost unit. Allocation of cost is directly assigned to the particular cost center. Cost Allocation, as the name suggest, is the direct allotment … Read more
Capital Transactions The business transactions, which provide benefits or supply services to the business concern for more than one year or one operating cycle of the business, are known as capital transactions. The transactions which relate to capital are again sub-divided into capital expenditure and capital receipt Capital Expenditure Capital expenditure consists of those expenditures, … Read more
Integrated or Integral Accounting System Integrated Accounts is the name given to a system of accounting, whereby cost and financial accounts are kept in the same set of books. Obviously, then there will be no separate sets of books for Costing and Financial records. Integrated accounts provide or meet out fully the information requirement for … Read more
Following are the records maintained for inventory management Purchase Requisition Note Indent Goods Receipt Note Job Order (In/Out) Material Issue Note Material Return Note Production Report Delivery Note Rejection Inward Rejection Outward