Tag: management accounting

Management Accounting

Defensive Interval Ratio | Formula

What is Defensive Internal Ratio? Defensive Internal Ratios is otherwise called as Basic Defensive Interval Ratio and Internal Measure Ratio. This ratio is calculated to find out whether liquid …
Management Accounting

Quick Ratio | Super Quick Ratio | Formulae | Significance

Quick Ratio | Acid Test Ratio | Liquid Ratio Quick ratio may be defined as the relationship between quick / liquid assets and current or liquid liabilities. Liquid assets …
Management Accounting

Direct Material Mix Variance | Meaning | Formula

Direct Material Mix Variance Direct material mix variance is a part of direct material usage variance. If only one type of material is used for production, there is no …
Management Accounting

Direct Material Usage Variance | Meaning | Formula | Causes

Direct Material Usage Variance Direct material usage variance is otherwise called as Direct Material Quantity variance. It is a part of direct material cost variance. According to ICMA, London, …
Finance

Material Price Variance | Meaning | Formula | Causes

What is Material Price Variance? Material Price Variance is the part of direct material cost variance. According to ICMA, London, “It is that portion of the direct material cost …
Management Accounting

Direct Material Cost Variance | Meaning | Formula | Causes

Direct Material Cost Variance It is otherwise called as Direct Material Variances. It is the difference between the standard cost of materials used for the actual output and the …
Management Accounting

Average Collection Period | Calculator | Example

Average Collection Period Formula The formula to find out average collection period is Average Collection Period = Total Accounts Receivable / Credit Sales Per day. Here, the Total accounts …
Management Accounting

Flow of Funds | Procedure for finding flow of funds

What is flow of funds? Flow means movement. The term movement includes inflow and outflow. Here, flow of funds means transfer of economic values from one asset of equity …
Management Accounting

Limitations of Financial Statements

Limitations of financial statements Most of the limitations are due to recorded facts, accounting rules and conventions and personal judgements. If proper care is taken and specifically prepare the …
Management Accounting

Essentials of Good Financial Statements

Essentials of Good Financial Statements A proper analysis and interpretation of financial statements enables the interested parties to judge the profitability and financial strength of the business. Hence, the …