Variable Overhead Efficiency Variance

Introduction Variable overheads account for an important and significant part of the total operating cost for any business, particularly in the manufacturing business. Variable overheads change with operating efficiency and contribute an integral part of total variable cost. The Marginal costing method accounts for the variable overheads to calculate the contribution margin. Variances in planned […]

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What is Direct Labor Efficiency Variance?

Introduction In this article, we will cover in detail the Direct Labor Efficiency Variance. Commonly, human capital is called the most precious asset for any organization, skilled labor for manufacturing companies in particular hold an important for efficient manufacturing. For companies producing a large number of different products and utilizing skilled labor, labor efficiency holds

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What is Direct Material Price Variance?

Introduction In this article, we will cover the Direct Material Price Variance. As you know, variance analysis is one of the key performance management tools, where implemented controls are measured and revised. In any business, continuous improvement and quality management concepts cannot be achieved unless performance measurement is done regularly. Definition Typically, we commonly known

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Audit Procedures for Accounts Receivable

Introduction In this article, we will cover the detailed audit procedures for accounts receivable. This includes the objectives, the key assertions as well as the audit procedures in response to those assertions. It is very essential to perform proper audit procedures for accounts receivable in order to obtain sufficient appropriate evidence. Accounts receivable are material

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Audit Procedures for Inventory

Introduction In this article, we will cover the substantive audit procedures for inventory. It is important to have a clear understanding of inventory audit, which is one of the most essential parts of inventory management. An inventory audit is a process of estimating the inventory maintained in a company’s books and comparing it against the

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What is Cash Flow Forecasting?

Introduction Cash forecasting, also known as cash flow projection, is a key driver for success if an entity prepare it properly. It plays an important role in helping business owner and top management in order to make any financial decision correctly both investment and financing arrangements. So what is cash flow forecasting? Definition Before dive

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