# Category: Management Accounting

Management Accounting

## Creditors or Payable turnover Ratio | Formula | Significance

Creditors or Payable turnover Ratio A business concern may not purchase its all items on cash basis. Sometimes, there may be credit purchase. This ratio is calculated to find …
Management Accounting

## Average Collection Period Ratio | Formulae | Significance

Average Collection Period Ratio is otherwise called as Average Age of Debtors. The term average collection period refers to the number of days waited to receive the amount from …
Management Accounting

## Debtors or Receivables Turnover Ratio | Formula | Significance

Debtors or Receivables Turnover Ratio It is otherwise called as Debtors Velocity. All the goods can not be sold on cash. There may be some credit sales. The credit …
Management Accounting

## Defensive Interval Ratio | Formula

What is Defensive Internal Ratio? Defensive Internal Ratios is otherwise called as Basic Defensive Interval Ratio and Internal Measure Ratio. This ratio is calculated to find out whether liquid …
Management Accounting

## Inventory or Stock Turnover Ratio | Formulae | Significance

Inventory or Stock Turnover Ratio Inventory or Stock TurnoverĀ is otherwise called as stock velocity. It indicates whether the inventory has been used effective or not. The very purpose of …
Management Accounting

## Quick Ratio | Super Quick Ratio | Formulae | Significance

Quick Ratio | Acid Test Ratio | Liquid Ratio Quick ratio may be defined as the relationship between quick / liquid assets and current or liquid liabilities. Liquid assets …
Management Accounting

## Problems faced by management in setting physical standards for direct labour

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 are …
Management Accounting

## Direct Material Mix Variance | Meaning | Formula

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 no …
Management Accounting

## Direct Material Usage Variance | Meaning | Formula | Causes

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, London, …
Management Accounting

## Direct Material Cost Variance | Meaning | Formula | Causes

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 the …