Machine Hour Rate

Machine Hour Rate

Meaning of Machine Hour Rate

Advantages/Merits of Machine Hour Rate :

1. Scientific method in case of more use of machines

2. Division in fixed and variable expenses

3. Measurement of efficiency of machines

4. Facility in Estimation

5. Machine vs Manual work

Disadvantages/Demerits of Machine Hour Rate :

1. Not suitable in labour intensive process

2. More calculation work

3. Difficulty in apportionment of some expenses

Statement showing machine hour rate

Some Important Practical question for Practice

Meaning of cost accounting

Difference between financial accounting and cost accounting

Characteristics of Cost Accounting :

(1) Cost accounting is an integral part of accounting

(2) It is both science as well as art

(3) Recording of all costs

(4) Ascertainment of total cost and per unit cost

(5) To know the cost of semi-finished goods

(6) Helpful in managerial decisions

(7) Scientific system

(8) Use in manufacturing and commercial enterprises

Objects of Cost Accounting

Advantage or importance of Cost accounting :

1) Advantages to the producer & Manager

2) Advantages to the employee

3) Advantages to the consumer and society

4) Advantages to the Creditors and Investor

5) Advantages to the government

Different Methods of Cost Accounting

Cost

Contents:  ➢ Expenditure incurred

➢ To producing a product (Tangible)

➢ To rendering a service (Intangible)

Elements of Cost  :

(1) Material : Direct Material and Indirect Material

(2) Labour : Direct Labour and Indirect Labour

(3) Expenses : Direct Expenses and Indirect Expenses

Overhead #

Meaning of Overhead

(1) Factory Overhead

(2)Office Overhead

(3)Selling Overhead

(4)Distribution Overhead

Machine Hour Rate - Cost Accounting

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What you will learn

• Meaning of Machine Hour Rate
• Advantages/Merits of Machine Hour Rate
• Disadvantages/Demerits of Machine Hour Rate

Rating: 0

Level: All Levels

Duration: 4 hours

Instructor: Dr. Mohd Saifi Anwar