Day: February 23, 2021

All types of manufacturing concerns can broadly be classified into two categories : (a) Mass production concerns and (b) Special order concerns. In mass production, firms manufacture uniform types of products. Since production is of standard products, it is on Read More …

Overheads are the indirect costs which cannot be allocated to any specific job or process because they are not capable of being identified with any specific job or process. Overheads include cost of indirect material, indirect labour, indirect expenses which Read More …

When cost accounts and financial accounts are maintained in two different sets of books, there will be prepared two Profit and Loss Accounts one for costing books and the other for financial books. The profit or loss shown by costing Read More …

Marginal costing is a technique where only the variable costs are considered while computing the cost of a product. The fixed costs are met against the total fund arising out of excess of selling price over total variable cost. This Read More …

Present  business world is full of competition, uncertainty and exposed to different types of risks. The complexity of managerial problems has led to the development of various management control techniques and procedures useful for the management in managing the business Read More …

The basic financial statements, i.e., the Balance Sheet and Profit and Loss Account or Income Statement of business, reveal the net effect of the various transactions on the operational and financial position of the company. The Balance Sheet gives a Read More …

An analysis of financial statements is the process of critically examining in detail accounting information given in the financial statements. For the purpose of analysis, individual items are studied, their interrelationships with other related figures are established, the data is Read More …

The term financial statements generally refers to two basic statements : (i) The Income Statement, and (ii) The Balance Sheet. Of course, a business may also prepare a Statement of Retained Earnings, and a Statement of Changes in financial Position Read More …

Accounting has been clearly defined as “the measurement and communication process of financial and economic data”. The science of accounting is still in the evolutionary process. The traditional accounting, later styled as single entry from of book-keeping, was in vogue Read More …

In the modern business world, the nature and functioning of business organizations have become very complicated. They have to serve the needs of variety of parties who are interested in the functioning of the business. These parties constitute the owners, Read More …