This Accounting category will cover various topics on accounting ranging from financial, management, and advance accounting.
Introduction All organizations work in hierarchical set up, approached differently according to each one’s needs. The top-down and bottom-up approach in budgeting are two approaches of decision making in an organization. These approaches can apply to any planning and decision making process e.g. forecasting, budgeting, and financial decision making. The choice between these two approaches […]
Top-Down and Bottom-up Approach in Budgeting Read More »
Introduction Budgets are an important tool for performance management for any business, even individual budgets. Budgets help management in planning, monitoring, and controlling performance measurements. In private businesses; the performance objectives are financial, quantitative in nature, and well defined, so the budgeting process is easier. Whereas, in the public sector the stakeholder objectives are often
What is Incremental Budgeting, A Traditional Approach? Read More »
Introduction All businesses are run by business managers at effectively three levels of operations, management, and strategic. Every successful business needs a well-planned strategy and implementation of these plans. These Managers make decisions regularly which may affect the businesses. In a simple example; a restaurant serving a customer with a customized order in late hours
Relevant Cost: A Concept for Decision Making Read More »
Introduction The pricing strategies are very important for a business. When you buy a product a small one like a pen or a luxury one like a car; you pay something for it, that’s the price tag for that product. Service agencies like digital marketers also charge your business for something. As buyers, you often
The Pricing Strategies: Approach to Product Pricing Read More »
Introduction Large firms around the world produce millions of products each month. Every product we buy is then the sum of the parts of several by-products. Let’s take an example of a garment business; it manufactures different garment wears like Shirts. That manufactured shirt utilizes raw cotton, stitching threads, sewing machines, colors, and skilled labor
What is Throughput Accounting? Read More »
Introduction Government grant is usually for the purpose of supporting not just non-profit organization but it is also applicable for other types of business entity. Accounting for government grants is very important so that the financial statements can be prepared to give true and fair view; thus enable all stakeholders to make business decision correctly.
Accounting for Government Grants IAS 20 Read More »
Introduction Lifecycle costing is one of the product costing methods that looks at the phases or stages of the product lifecycle. Today’s global market is ever-changing and the internet of things influenced by social media has already revolutionized the way customers’ used to buy. There are a number of Smartphone brands out in the market,
What is Lifecycle Costing? Read More »
Introduction How do customers’ become loyal to the brands that they buy repeatedly? Or in certain demography a particular brand is popular? How do brands achieve that success? These brands produce quality products; provide value for money for their products to the customers. These brands apply a concept of Total Quality Management (TQM) throughout their
JUST IN TIME (JIT) Techniques in Production Read More »
Marginal Costing is an accounting system in which fixed costs attributable to the relevant production period are written off in full against the contribution, and the variable costs are charged to cost units
The Marginal Costing: An overview in relation to the absorption costing Read More »
In previous article, we have covered the definition of depreciation expense of property plant and equipment (PPE) as well as other fixed assets and the basic understanding on types of depreciation methods. In this article, we will further explain in detail of each type of depreciation method including the calculation, when to use it as
Four Types of Depreciation Methods Read More »
