Advantages of Accounting Rate of Return Method (ARR Method) The following are the advantages of Accounting Rate of Return method. 1. It is very easy to calculate and
Ratio analysis serves the purposes of various interested parties of the financial statements. The interested parties are top management, shareholders, creditors, employees, government and tax authorities. With the
What is Ratio Analysis? Ratio analysis is one of the tool or technique used for analysis of financial statements. Financial executives need certain yardstick to evaluate the financial
Meaning of Financial Statements Financial statements means the statements prepared for the purpose of presenting a periodical review or report on the progress of business by the management.
What is a financial statement? The term financial statement refers to statement of Changes in financial position, Statement of Retained Earnings, Balance Sheet, Profit and Loss Account, etc.
Tools of Management Accounting The various tools used at present in management accounting may be classified into the following groups. 1. Based on Financial Accounting Information Analysis of
Management accounting is an important tool of management. Hence, it serves the management in many ways. Even though, the management accounting has some limitations or disadvantages. They are
Advantages of management accounting The important uses of management accounting are briefly explained 1. Planning The management can prepare the plan and execute the same for effective operation
The management accounting system provides highly useful economic and financial data to the management. A channel is used to transmit the information efficiently and effectively that channel is
Benefits or Advantages of Inter Firm or Intra Firm comparison Inter firm comparison has brings same benefits to every business unit. They are presented below: 1. The management