Parties interested in Financial Statements There are many people using the financial statements. They are assessing the financial statements in terms of profitability, liquidity and solvency. Some of
Limitations of Cash Flow Statements- Cash flow statement is used as a tool of financial statement analysis. Even though, cash flow statement suffers from some limitations. Such limitations
General Profitability Ratios Some profitability ratios are calculated in relation to sales, they are termed as General Profitability Ratios. Such ratios are presented below: Gross Profit Ratio. Operating
What is current ratio? It is otherwise called as working capital ratio. Current ratio may be defined as the relationship between current assets and current liabilities. Current ratio
Steps involved in Target Costing process The following are the main steps or stages involved in the target costing process. 1. Conducting Market Research: The company should determine
The technique of determining both standard cost and estimated cost is the same and accounting procedures are also equally the same. But, they have the differences with each
Steps in installation of Standard Costing System As Standard Costing is an important management tool, important should be given in its installation. The following steps are involved for
Assumptions of break-even chart The followings are the assumptions of Break Even Chart. 1. All costs are divided into fixed and variable costs. 2. Fixed costs will remain
What is Labor Rate Variance? Labor Rate Variance (LRV) is otherwise called as labor Price Variance, labor Rate of Pay Variance and labor Wage Rate Variance. It is
Scope of Capital budgeting decisions Generally, the capital budgeting decisions are related to long term investments. The general scope of capital budgeting decisions are discussed briefly below. 1.