Accounting

This Accounting category will cover various topics on accounting ranging from financial, management, and advance accounting.

Budgetary Slack: Definition, Causes and How to Control Budgetary Slack

In this article, we will cover the budgetary slack. This includes the definition, causes, the Repercussion of budgetary slack and how to control budgetary slack. First, let’s go through the overview together before going further detail. Typically, all businesses prepare budgets of various types; budgets are an estimation of future expenses, revenue, cash flows, etc. […]

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Six Common Performance Measures for Inventory Management

In this article, we will cover the six common performance measures for inventory management. This performance measures are sometimes called performance metrics or performance indicators (KPIs). Inventory management plays a key role in business efficiency. Businesses adopting lean manufacturing and total quality management approaches are particularly keen on inventory management. Efficient inventory management can affect

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Standard Costing: Meaning, Objectives, Types, Advantages and Disadvantages

Introduction In this article, we will cover the standard costing. This includes the definition, objectives, types of performance standard as well as the advantages and disadvantages of it. First, let’s go through the overview of standard costing. Cost accounting is the branch of accounting which, as the name suggests, deals with the recording, analyzing and

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What is Break-Even Analysis?

Overview In this article, we will cover in detail for the break-even analysis. This involves the calculation of break-even point for a business. Before going in detail, let’s go through the overview and the basic definition. Typically, the ultimate goal of any business is to make profits. These profits are calculated by subtracting all the

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Fixed Overhead Volume Variance: Capacity and Efficiency Variances

Introduction Overhead costs are categorized into fixed and variable costs. Both these costs can change depending on several factors. Depending on the costing method in use, the contribution or profit margins can significantly change with variance in either fixed or variable overheads. Under the Marginal costing method, overhead costs are charged directly to the income

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What is Fixed Overhead Spending Variance?

Introduction In this article, we will cover in detail about the fixed overhead spending variance. We commonly call The fixed overhead spending variance as fixed overhead expenditure variance or fixed production overhead expenditure variance. Before going further detail, let’s have a look at overview and the basic definition. Business operations require ongoing expenses to produce

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What are Planning and Operational Variances for Labor?

Introduction In this article, we will cover in detail of the planning and operational variances for labor. This includes the further breakdown into direct labor rate operational variance, direct labor rate planning variance, direct labor efficiency operational variance and finally direct labor efficiency planning variance. In this article, we will illustrate the detail breakdown of

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