Meaning of Activity Based Costing (ABC) Activity Based Costing is an accounting methodology used for assigning accurately the extent of resources consumed and overhead costs incurred to produce
Problems of Target Costing One should be aware of the problems of target costing. If so, the target costing can be properly followed. Some of the target costing
Traditional Costing Method vs Target Costing Method Traditional Costing Method Under traditional method of costing the manufacturers use the cost details in such a way that cost plus
Overall Profitability Ratios Profit is used as a yardstick to measure the profitability of any business concern. Generally, an analyst calculates overall profitability ratios before giving any recommendation
What is Total Labour Efficiency Variance? Total labour efficiency variance is a part of labour cost variance. It is otherwise called as Labour time Variance. Definition of Total
Market test or Valuation Ratios The followings are the market test or valuation ratios. Dividend Yield Ratio. Dividend Payout Ratio or Payout Ratio. Price Earning Ratio or P/E
Net Present Value Method Net Present Value method is also called Excess Present Value (E.P.V) or Net Gain Method or Investor’s Method. The time value of money is
Tools or Techniques of Financial Statement Analysis Important tools or techniques of financial statement analysis are as follows. Comparative Statement or Comparative Financial and Operating Statements. Common Size
History of ABC System or How did Activity Based Costing emerge? Activity Based Costing (ABC System) is the latest development of Cost Accounting System. Under ABC system, the
Debt Equity Ratio It is otherwise called as External-Internal Equity Ratio. This ratio is calculated to know the level of claims of the outsiders and owners i.e. shareholders