Costing Terms

This Category is dedicated to articles related to Costing Terms.


Break Even Point

Break-Even Point Definition Break-even point is the level of production where the total revenues and total expenses of the company are equal. At the break-even point, the revenue of …

Types of Inventory / Stock

5 Basic types of inventories are raw materials, work-in-progress, finished goods, packing material and MRO supplies. Inventories are also classified as merchandise and manufacturing inventory. Other such classifications on …

Relevant Costs

Relevant costs are defined as the costs that arise in future and are different for different alternatives. The concept of relevant costs are used by management for making various …

Marginal Cost

Marginal Cost is the additional cost that is incurred for producing one additional unit of product. One of the classifications of cost divides all cost between fixed, semi-variable and …
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