What is tender price | what is quotation price and estimation price in cost accountinghere in this video has discussed about tender price quotation price and. Ost accountingintroduction1) cost accounting: an introduction2) cost accounting and its relation with financial accounting3) cost accounting system and metho.
Other helpful videos for *cost accounting* cost control and cost reduction : youtu.be 5fb9gfh 7midifference between cost accounting and financial ac. Hence, tender statement is a cost sheet which also shows, besides total cost, the tender price, i.e., total estimated cost of production plus a reasonable amount of profit. items to be included in tender price: 1. direct expenses: direct expenses refer to direct materials consumed direct labour and other direct expenses. In many tendering processes, submitting tender price or quotation price comes at a later stage. stage one, focusses on the technical aspects. stage two, requires you to work on a tender cost sheet after you have received a quotation request from the buyer (note – once the quotation is submitted, no changes can be made in the costing). The total of prime cost plus absorbed works overheads and office overheads will be cost of production. selling overheads, if any, may be added there to on the basis of its absorption rate. it may be a percentage on cost of production or sales or at selling overheads per unit. by adding desired profit. tender price or quotation price will be known.
In many tendering processes, submitting tender price or quotation price comes at a later stage. stage one, focusses on the technical aspects. stage two, requires you to work on a tender cost sheet after you have received a quotation request from the buyer (note – once the quotation is submitted, no changes can be made in the costing). The total of prime cost plus absorbed works overheads and office overheads will be cost of production. selling overheads, if any, may be added there to on the basis of its absorption rate. it may be a percentage on cost of production or sales or at selling overheads per unit. by adding desired profit. tender price or quotation price will be known. 3. total cost and cost per unit of output is ascertained. 4. one of the simplest method of costing. 5. to ascertain the profit or loss on production. different methods of cost accounting : 1) unit costing method . 2) contract costing method . 3) job costing method . 4) process costing method. 5) batch costing method . 6) operating costing method. On the basis of such percentage, the amount of profit is determined. the following two conditions may be possible: (a) if the expected profit for a tender is given as a percentage of cost: profit = (total cost*percentage of profit) 100. (b) if the expected profit is given as a percentage of selling price of the tender:.
3. total cost and cost per unit of output is ascertained. 4. one of the simplest method of costing. 5. to ascertain the profit or loss on production. different methods of cost accounting : 1) unit costing method . 2) contract costing method . 3) job costing method . 4) process costing method. 5) batch costing method . 6) operating costing method. On the basis of such percentage, the amount of profit is determined. the following two conditions may be possible: (a) if the expected profit for a tender is given as a percentage of cost: profit = (total cost*percentage of profit) 100. (b) if the expected profit is given as a percentage of selling price of the tender:.
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