Both standard costing and budgetary control have common objective of controlling costs or expenses. Hence, these systems are considered to be interrelated to each other. But they are
The technique of determining both standard cost and estimated cost is the same and accounting procedures are also equally the same. But, they have the differences with each
Steps in installation of Standard Costing System As Standard Costing is an important management tool, important should be given in its installation. The following steps are involved for
Assumptions of break-even chart The followings are the assumptions of Break Even Chart. 1. All costs are divided into fixed and variable costs. 2. Fixed costs will remain
Under marginal costing, the details of break-even point are represented in graph ie break-even chart. The break-even chart is not only show break-even point but also indicates estimated
What is Labor Rate Variance? Labor Rate Variance (LRV) is otherwise called as labor Price Variance, labor Rate of Pay Variance and labor Wage Rate Variance. It is
Scope of Capital budgeting decisions Generally, the capital budgeting decisions are related to long term investments. The general scope of capital budgeting decisions are discussed briefly below. 1.
Meaning of Capital Budgeting Capital Budgeting is the process of making investment decision in fixed assets or capital expenditure. Capital Budgeting is also known as investment, decision making,
Types of capital budgeting decisions Generally the business firms are confronted with three types of capital budgeting decisions. (i) The accept-reject decisions; (ii) mutually exclusive decisions; and (iii)
Objectives of Cash Flow Statement The following are some of the objectives of cash flow statement. 1. The management can find the movement of cash for a specific