The management is facing several problems while setting physical standards for direct labour. Out of many problems, some of the problems are briefly explained below. 1. New workers
Direct Material Mix Variance Direct material mix variance is a part of direct material usage variance. If only one type of material is used for production, there is
Direct Material Usage Variance Direct material usage variance is otherwise called as Direct Material Quantity variance. It is a part of direct material cost variance. According to ICMA,
Direct Material Cost Variance It is otherwise called as Direct Material Variances. It is the difference between the standard cost of materials used for the actual output and
Average Collection Period Formula The formula to find out average collection period is Average Collection Period = Total Accounts Receivable / Credit Sales Per day. Here, the Total
What is flow of funds? Flow means movement. The term movement includes inflow and outflow. Here, flow of funds means transfer of economic values from one asset of
Capital Structure or Leverage Ratio Capital structure refers to the degree of long term financing of a business concern as in the form of debentures, preference share capital
Types of financial statement analysis Financial statements analysis are classified according to their objectives, Materials used and Modus operandi. Financial statement analysis, according to objectives are further subdivided
Procedure of Financial Statement Analysis A common procedure is followed for financial statement analysis. Such procedure is briefly explained below. 1. Objective of Analysis: The objective of analysis
The mere preparation of Profit and Loss Account and Balance Sheet does not give more information for managerial decision making. Hence, there is a need for analyzing the