Physical Unit method:

The Physical Unit method of allocation joint costing is used for separable products and cost is based on the weight allocated to each portion of the production. The formula for the Physical Unit method is as follows:

For explaining this method we have many examples but the example which I am going to give there that is from the Oil sector. The Oil rigging is a process to produce the oil which a natural resource but during the producing process there are many other by products which we abstract from this process the oil companies use the same resources but with the different production costs which are actually joint costs with each other. That example helps us to understand these methods.

“Gleim’s book 15^th edition for the CMA-USA students and Professionals is the source of all the examples and this topic”

Comments

Financial & Non -Financial Benefits from the Membership of Chamber of Commerce & Industry.

We know every business firm , commerce department, trading venture, and industrial unit always needs, Visibility to stand out and get noticed as an active participant in the society. The eventually prefer to avail growth opportunities through the provision of quality training and educational activities and through different events. They require Credibility through their production activities and services provision, which helps them in building a reputation. The holder of this membership can enjoy and avail members of member discounts to improve their purchasing power and all other offers and benefits as offered from time to time. That also helps them to build their communityNetwork and to make them socially powerful and these professional relationship helping them to get a plate forum that advocates on their behalf. This all means all industrialist, businessmen, and corporate identity holder (Only Owners of the Corporates or in some cases their partners and directors) must ...

ACCOUNTING CYCLE

Accounting Cycle: Accounting is the field of study which tells us about how to collect the economic figures, evaluate and analyze them and record them in a very respectable and professional way to present to the business stakeholders and helps them to collect the required information from the pool of business transactions. That is an art and we also knows it with the name of book keeping. As I write in the above paragraph accounting of business financial transactions is an art of collection, evaluation, analyzing, recording and presenting to the business management and stakeholders. That complete process is based on some steps of activates which are commonly known as accounting cycle. That Accounting Cycle is consist of 7 different steps which are Source Data, Journal, Ledger, Trial Balance, Adjustment, Closing Accountings and Stock Valuation and Preparation of Fina...

Successful Financial Planning for Business:

Successful Financial Planning for Business: Management is the name of Planning, Organizing, Executing and Leading the activities to achieve the given targets and goals in the available limited resources and within the given time period. Finance is the backbone of the company. Companies in the business world always hire the thought, and able staff for this purpose. There are some key steps that show us How can we efficiently make a financial plan for the success and growth of our business. The key points and steps towards the successful financial planning are as follows: 1. You need a very professional team for making financial budgets and plans. That team make your business able to achieve the better results in a very limited budget and time. 2. You need to focus on all the key gaps which can ruin your business. 3. Entrepreneurs needs to be...

Accountancy & Financial matters Management blogs

Search This Blog