Difference between Cash flow and Fund flow
by Cash Flow statement shows the changes in the cash position (Inflows and outflows) of a firm. It is an analytical reconciliation statement which explains the reasons …
Tag: Job Costing
Methods of Budgeting
Incremental Budgeting Incremental budgeting takes last year’s actual figures and adds or subtracts a percentage to obtain the current year’s budget. It is the most …
Direct Costing
Direct costing is a specialized form of cost analysis that only uses variable costs to make decisions. It does not consider fixed costs, which are assumed to be associated with …
Cost-Volume-Profit Relationship
Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company’s operating income and net income. In performing this analysis, there …
Preparations of different budgets
Many organizations prepare budgets that they use as a method of comparison when evaluating their actual results over the next year. The process of preparing a budget …
Fixed and Flexible Budgeting
Fixed Budget: This budget is drawn for one level of activity and one set of conditions. It has been defined as a budget which is …
Performance budgeting and Zero Base Budgeting
Performance Budgeting had its origin in U.S.A. after the Second World War. It tries to rectify some of the shortcomings in the traditional budget. In …
Standard Cost Advantages, Limitations and Applications
Standard Cost is a predetermined cost assigned to a product or service, based on expected production conditions and efficiency levels. It serves as a benchmark …
Computation of Material variances
Material cost variance is the difference between the actual cost of direct material used and standÂard cost of direct materials specified for the output achieved. …
Computation of Overhead Variances
The analysis of factory overhead variances is more complex than variance analysis for direct materials and direct labour. There is no standardisation of the terms …
You must be logged in to post a comment.