ACTIVITY BASED COSTING (ABC)
ABC Plan ABC Plan is used to control the inventory by applying security measures or controls on each category. Through this technique management is able […]
Inventory Control Models
Entity needs to maintain inventory at appropriate level keeping balance in contrasting factors inventory levels e.g if large amount of inventory is ordered ordering cost […]
Job Order Costing
Small businesses maintain accounts for individual job orders .Due to lack of huge manufacturing orders they find ease to maintain for cost accounts on basis […]
Inventory Valuation Methods
According to IAS2 inventory should be measured at lower of COST and NET PRESENT VALUE Net realizable value(NPV) is the estimated selling price(SP) in the […]
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 […]
TYPES OF COST – BASED ON COST BEHAVIOR
Cost behavior Fixed cost Variable costs Semi variable costs Stepped fixed Fixed Cost This cost remains fixed over certain period of time irrespective of […]
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 […]
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 […]
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 […]