Management Accounting
Effect of Change in Variable Cost, Fixed Cost and Sales Volume on Contribution Margin and Profitability: Learning Objectives: What is the effect of change in variable cost, fixed cost and sales volume on contribution margin and profitability? The following data is used to show
Accounting Equation Learning Objective: Define and explain accounting equation. Give an example of accounting equation. Definition and Explanation of Accounting Equation: Dual aspect may be stated as “for every debit, there is a credit.” Every transaction should have twofold effect to the extent of
Bookkeeping Versus Accounting: Learning Objectives: What is the difference between bookkeeping and accounting? There is some confusion over the difference between bookkeeping and accounting. This is due to the fact that two are related and there is no universal accepted line of demarcation between
Effect of Change in Regular Sales Price on Contribution Margin and Profitability: Learning Objectives: What is the effect of changing regular sales price on the contribution margin and profitability of the firm? The following data is used to show the effect of changes in
Definition and Explanation of Single Entry System: Learning Objectives: Define and explain single entry system of bookkeeping. What are limitations of single entry system of accounting It is difficult to define single entry system because, in fact, there exists no system like single entry
External Failure Cost Definition: Costs that are incurred when a product or service that is defective is delivered to a customer.
External Environment Definition: Outside institutions or forces that potentially affect an organization’s performance.
Extended Example of Net Present Value Method: Difficulties Encountered in Process Costing Procedures: Learning objectives of this article: What are the difficulties or Limitations in a process costing procedure? Certain difficulties likely to be encountered in actual practice should be mentioned with regard
Effect of Change in Fixed Cost and Sales Volume on Contribution Margin and Profitability: Learning Objectives: What is the effect of change in fixed costs and sales volume on contribution margin and profitability? The following data is used to show how changes in fixed costs
Bookkeeping: After studying this chapter you should be able to: Introduction: The need for a system by which man might keep a record of his business transactions with his fellowmen was felt early in the history of civilization. Many and varied methods were used
Definition and Explanation of Process Costing System: Cost accumulation procedures used by manufacturing concerns are classified as either job order costing or process costing. The Job Order Costing System chapter deals with the procedures applicable to job order costing. It is important to understand
Consignment Accounting Journal Entries Learning Objectives: Make journal entries in the books of consignor and that of consignee. As the goods sent on consignment by the cosigner are not his sales, he must not record consignment as sales and the consignee must must not
Expense Ratio: Definition: Expense ratios indicate the relationship of various expenses to net sales.The operating ratio reveals the average total variations in expenses. But some of the expenses may be increasing while some may be falling. Hence, expense ratios are calculated by dividing each
Effect of Change in Fixed Cost, Sales Price and Sales Volume on Contribution Margin and Profitability: Learning Objectives: What is the effect of change in fixed cost, sales price and sales volume on contribution margin and profitability? The following data is used to show
Trading account format and accounting trading and profit and loss account examples in balance sheet. Different solved problems in trading profit and loss a/c in final accounts format for carriage outwards. Learning Objectives: Prepare trading and profit and loss account and balance sheet. Example
Definition, Explanation and Examples of Joint Venture: Learning Objectives: Define and explain the terms joint venture. What the advantages or benefits of joint venture. Definition: A joint venture is a temporary partnership of two or more persons engaged in any particular business adventure of
Bills Receivable Book: Learning Objectives: Define and explain bills receivable book. Prepare a bills receivable book and post into ledger. Definition and Explanation: Bills receivable book is used to record the bills received from debtors. When a bill is received, details of it are
Causes of Depreciation: Learning Objectives: What are the causes of definition? The main causes of depreciation may be divided into two categories, namely: Internal Cause and External Causes Internal Causes: Depreciation which occurs for certain inherent normal causes, is known as internal depreciation. The
