Business reporting system Under the present competitive world, a reporting system is a must for increasing the understanding and generating confidence in the minds of management team and
Understanding Variance analysis The primary objective of variance analysis is to exercise cost control and cost reduction. Under standard costing system, the management by exception principle is applied
The followings are the limitations, drawbacks, setbacks of the Standard Costing Technique. Limitations of Standard Costing 1. More Expenses: The standard is fixed for raw materials in terms
Standard costing can be used as management tool. By knowing cost information, the management can take effective decision. Besides, the following advantages can be derived by using standard
The calculation of ratio is very easy. But, the interested party or analyst should be very cautious while analyzing and interpreting the ratios. The following guidelines or factors
Steps involved in financial ratio analysis The following are the steps involved in the financial ratio analysis. 1. An analyst should decide the objectives of ratio analysis. 2.
The following are the factors which are highly influencing Capital Expenditure decisions. Factors influencing capital expenditure decisions 1. Availability of Funds All the projects are not requiring the
Budgetary control is used as a tool of management control and derives some benefits. Even though, there are some disadvantages or limitations also. They are listed below. Disadvantages
Essentials of effective budgetary control (or) Preliminaries for the adoption of budgetary control system are listed below. Essential elements of effective budgetary control 1. Support of Top Management
The very objective of budgetary control is the allocation of responsibility with budgeted figures and develops a basis for the measurement of performance to find the efficiency of