# Category: Management Accounting

## Target Costing | Problems | Role of Cost Accountant under Target Costing

Problems of Target Costing One should be aware of the problems of target costing. If so, the target costing can be properly followed. Some of the target costing problems …

## Differences Between Traditional Method of Costing and Target Costing

Traditional Costing Method vs Target Costing Method Traditional Costing Method Under traditional method of costing the manufacturers use the cost details in such a way that cost plus approach …

## Overall Profitability Ratios | Explanation | Formulae | Significance

Overall Profitability Ratios Profit is used as a yardstick to measure the profitability of any business concern. Generally, an analyst calculates overall profitability ratios before giving any recommendation to …

## Total Labour Efficiency Variance | Meaning | Causes | Formula

What is Total Labour Efficiency Variance? Total labour efficiency variance is a part of labour cost variance. It is otherwise called as Labour time Variance. Definition of Total labour …

## Market test or Valuation ratio | Explanation | Formula

Market test or Valuation Ratios The followings are the market test or valuation ratios. Dividend Yield Ratio. Dividend Payout Ratio or Payout Ratio. Price Earning Ratio or P/E Ratio …

## Internal and External reports | Meaning | Types

The reports are classified on the basis of purposes also. They are internal reports and external reports. Internal Reports External Reports What are Internal Reports? Reports that are prepared …

## Net Present Value Method | Formula | Steps | Merits | Demerits

Net Present Value Method Net Present Value method is also called Excess Present Value (E.P.V) or Net Gain Method or Investor’s Method. The time value of money is taken …

## Tools or Techniques of Financial Statement Analysis

Tools or Techniques of Financial Statement Analysis Important tools or techniques of financial statement analysis are as follows. Comparative Statement or Comparative Financial and Operating Statements. Common Size Statements. …

## Differences between Cash Flow Statement and Funds Flow Statement

Even though Cash flow statement and Funds flow statement focus on the concept of fund, there are some differences between these two statements. They are discussed below. Differences between …

## Emergence of Activity Based Costing (ABC)

History of ABC System or How did Activity Based Costing emerge? Activity Based Costing (ABC System) is the latest development of Cost Accounting System. Under ABC system, the overheads …