## How to Calculate Sales Mix Variance?

In this article, we will cover how to calculate sales mix variance. This includes the definition, important of sales mix variance, example calculation, causes for favorable and adverse variance as well as the limitation of sales mix variance. Variance reports are developed at the closing of each control period (say, at the end of each …

## How to Prepare a Statement of Stockholders’ Equity?

The statement of stockholders’ equity is also known by the following names; statement of shareholders’ equity, statement of equity, statement of changes in stockholders’ equity, statement of changes in shareholders’ equity, and statement of changes in equity. We usually use these key term interchangeably. Statement of stockholders’ equity is one of the five components of …

## Convertible Bonds: Definition and Example Calculation

Bonds are one type of debt financing. Basically, bonds are considered as long-term debt of capital that a company raised in order to get more fund for its investment projects. The company raises the bonds need to pay fixed interest to bondholders; usually semi-annually or annually. There are several types of bonds; one of which …

## Budgetary Control: Meaning, Objectives, Advantages and Limitation

Budgeting is the process of making a plan or forecast for the future of a business. Budgeting is an important part of the management and cost accounting of a business. The budgeting process of a business consists of forecasting its incomes and expenses. Once these incomes and expenses are determined, the forecasted profits of the …

## Capital Budgeting Techniques for Project Appraisal: The Ultimate Guide

There are many different sources of finance that businesses can use to meet their needs. These sources of finance may include capital invested by the owners or debt received from third parties. In the case of companies, it also includes any equity finance raised through the issue of shares and equity instruments. Businesses need to …

## What is Common Size Balance Sheet?

Overview Financial statements are reports that provide information to their users regarding different aspects of the business. All businesses must produce financial statements. Sometimes, businesses prepare financial statements because they are required by relevant rules and regulations. However, some businesses, that are not required by rules and regulations, may also prepare financial statements voluntarily to …

## How to Calculate EBITDA?

Overview In this article, we will cover how to calculate EBITDA. Before going in detail, let’s go through the overview and basis definition of EBIDTA. Basically, there are many ratios and statistics that investors use to check whether investing in a particular business is profitable for them. These ratios can tell the investor different information …

## The Consistency Principle in Accounting

Financial accounting rests on two pillars of recording and summarizing the accounting records. These accounting records from registering in a ledger to analyzing and interpretation must follow some rules. Without following rules the data presented and evaluated would be null and void. There are several accounting principles or concepts that a business can follow or …

## The Money Measurement Concept: Definition, Important and Example

The Money measurement concept is one of the basic accounting principles or theories that form part of the larger set of accounting rules. Record keeping and performance measurement are key components of an accounting cycle. Financial accounting is based on several principles such as business entity concept, historical cost, accrual basis accounting principle, matching principle, …

## 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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