Materials Purchase Cycle

Materials Purchase Cycle – EXPLAINED

Materials Purchase Cycle   When a department stock level drops down , the particular department issues purchase request to purchase department in purchase requisition form stating stock item required with specific quantity and other specifications On receipt of  requisition form , purchase department place ORDER with supplier in purchase order form. This form contains all …

Materials Purchase Cycle – EXPLAINED Read More »

COST CLASSIFICATION

COST CLASSIFICATION – TYPE OF COSTS

Cost classification is arranged in groups on suitable basis. Costs can be classified on different basis: Element Function Nature Classification on basis of Element Material –materials purchase for production or non- production purpose, direct or in direct material Labor  – all salaries and wages paid to workforce whether work specifically for materials as direct labor …

COST CLASSIFICATION – TYPE OF COSTS Read More »

Differences between FINANCIAL and MANAGEMENT ACCOUNTING

Differences between FINANCIAL and MANAGEMENT ACCOUNTING

Management Accounting Management also known as cost accounting is system of identifying, recording, analyzing and presenting data relating to organization’s own products/services, with main focus on entity’s internal system, cost accounting helps the helps at three namely planning, control and decision making: Management accounting gathers cost information and relates it to cost objects, cost centers, …

Differences between FINANCIAL and MANAGEMENT ACCOUNTING Read More »

Levels of Planning

Levels of Planning – KEY POINTS

Operational Planning Planning by supervisors of Information need for daily tasks Tasks specific information Short term  requirement Day to day planning   Tactical Planning Short term planning  by juniors managers of  resource allocation decisions both short term and long term by managers of departments less detailed than strategic planning   Strategic Planning long term planning …

Levels of Planning – KEY POINTS Read More »