Absorption costing meaning The other name of absorption costing is full costing, total costing, conventional costing and orthodox costing. Under absorption costing, both fixed costs and variable costs
Meaning of Marginal Cost Marginal cost means an amount at any given volume of output by which the aggregate costs are changed if the volume of output is
Steps involved in calculation of Present Value Factor (P.V.F) The following steps are involved in the preparation of present value 1. Cash outflows of the first year is
Advantages of Accounting Rate of Return Method (ARR Method) The following are the advantages of Accounting Rate of Return method. 1. It is very easy to calculate and
Ratio analysis serves the purposes of various interested parties of the financial statements. The interested parties are top management, shareholders, creditors, employees, government and tax authorities. With the
What is Ratio Analysis? Ratio analysis is one of the tool or technique used for analysis of financial statements. Financial executives need certain yardstick to evaluate the financial
Meaning of Financial Statements Financial statements means the statements prepared for the purpose of presenting a periodical review or report on the progress of business by the management.
What is a financial statement? The term financial statement refers to statement of Changes in financial position, Statement of Retained Earnings, Balance Sheet, Profit and Loss Account, etc.
Tools of Management Accounting The various tools used at present in management accounting may be classified into the following groups. 1. Based on Financial Accounting Information Analysis of
Management accounting is an important tool of management. Hence, it serves the management in many ways. Even though, the management accounting has some limitations or disadvantages. They are