Accounting Terminologies
What is Private ledger?
i-ask! | Have a question? Ask Tutor! What is private ledger? Does it mean a ledgers of private company? Or is it a just a new type of ledger? Private ledger is basically such book of accounts in which such accounts are maintained which are maintained to be confidential. Therefore, any such account which might [...]
What is meant by direct overheads? Does allocated overheads mean direct overheads?
i-ask! | Have a question? Ask Tutor! What are direct overheads cost? And how they are different from indirect overheads? I just want to make sure whether direct overheads are such overheads which are “allocated” and indirect overheads are the overheads which are “apportioned” Please explain whether I am right or wrong First of all [...]
What is conversion cost?
i-ask! | Have a question? Ask Tutor! What is Conversion cost? What costs are included in conversion costs? Conversion cost is the sum of all such costs that are incurred in converting one article into intended output. Mostly, coversion costs represents the costs of all such activities or resources that have been applied in converting [...]
What is prime cost?
i-ask! | Have a question? Ask Tutor! What is Prime Cost? What costs are included in prime costs? Prime cost is a sum of all the direct costs i.e. prime cost is the aggregate of all such costs that can be traced back to products (cost units) or cost centers. Thus prime cost means sum [...]