CLASSIFICATION OF COSTS BY BEHAVIOUR  Classifying costs by behaviour requires you to classify the costs into Variable costs Fixed costs Semi-variable costs Stepped costs Variable costs- these are costs that vary with the level of production or activity. It is usually assumed to vary in direct proportion to production. For example, if you make twice … Read More

What do you believe about the career path you have chosen? For most people this is a strange question – we rarely spend time thinking about our own beliefs. A quick answer to this is- many people think that the accounting profession is a well-paid profession, especially, when you are a qualified Accountant. The collection … Read More

HIGH/ LOW POINT METHOD Splitting of semi-variable costs Included in semi-variable costs is an element of both fixed and variable costs. In cost accounting it is important to be able to split these costs and identify the variable costs separately from the fixed costs and this is achieved by using the ‘high/low’ method. The idea … Read More

What is the definition of an Accountant? Someone who solves a problem you didn’t know you had in a way don’t understand Accruals, prepayments, adjustments to accounts are all legit I’m sure you know that!!! I’m hope you know what accruals and prepayments are! They are just one of those things Accountants use to confuse … Read More

TRIAL BALANCE   The Trial Balance is used to check the arithmetical accuracy of the accounting entries in the ledgers after the last transaction of a trading period has been entered and before the preparation of the Final Accounts. The Trial Balance shows the closing balances of each general ledger account on a periodic bases, … Read More