Commerce Forward

In this article you will read about the fundamental principles of costing 1.        Cost is related to its cause. A cost is related as closely as possible to its cause. Rent of the factory, for instance, cannot be charged to office expenses, repairing charges of a machine cannot be charged to some other machine, and in the same way, a foreman’s salary cannot be charged to one single unit, if many more units are produced in a department supervised by that foreman. The reason in all the above cases is that cost is related to its cause. 2.        Cost is charged after it is incurred. If a cost is not incurred either actually or notionally, it cannot be charged to a cost centre. For instance, a cost unit is not charged with selling costs while it is still under manufacture in the factory, as selling costs would occur only when the cost unit is finished in the factory and is sold. Similarly, normal loss or wastage is to be borne by the units of which it is a loss or wastage, su

Public finance deals with the problem of adjustments of income and expenditure of the government. Public finance is a field of inquiry that treat the income and outgo of government. In the modern times, public finance includes mainly five divisions- public revenue, public expenditure, public debt, financial administration and economic stabilization. The point to be noted is that the subject matter of public finance is changing day by day due to the change in the concept and functions of government. The economic role of the government is not only confined to allocation and distribution of resources besides that it also makes effort to achieve stability, full employment and higher economic growth. Broadly we categorized the scope or subject matter of public finance in following headings: 1.        Public revenue: In the study of public finance, public revenue plays an important role. It includes the study of all those methods which a government earns revenue. It studies the method