Steps in installation of Management Accounting System The following steps have to be taken by the top management to install efficient and effective Management Accounting System. 1. Preparation
The functions of management accountant depend upon his status in the organization, agreement with the organization, experience and capacity of the management accountant. On this basis, the functions
Meaning of Inter-Firm Comparison Inter firm comparison means a comparison of two or more similar business units with the objective of finding the competitive position to improve the
Understanding Sales budget In every organization, sales budget is the principal budget. Hence, all other budgets are prepared on the basis of sales budget. The sales budget is
What are the elements of successful budgeting? The following elements are necessary for successful budgeting. 1. Accurate Forecasting The business activities may be forecasted accurately to some extent.
Understanding Budget Period Before preparing a budget, the organization should decide the budget period. The budgeting must be related to a specific period of time. There is no
Understanding Cash Budget The other name of cash budget is finance budget. This budget is the most important of all the functional budgets. But, this budget is prepared
What are reference prices? Prices that help customers to perceive the value of goods and services offered to them are called reference prices. Generally, customer’s use price as
Demand-based pricing is one of the major approach to pricing. Under this method, the service provider does not consider cost of service rendered by him. He allows the
Competition based pricing of services Prices charged by different firms in the same market is the main focus of Competition-based pricing. This approach is commonly used in two