Financial Statements
Financial Statements: According to the American Institute of Certified Public Accountants, “Financial statements reflect a combination of recorded facts accounting conventions and personal judgements and...
Financial Statements: According to the American Institute of Certified Public Accountants, “Financial statements reflect a combination of recorded facts accounting conventions and personal judgements and...
The main purpose of management accounting is to provide information to the management team at all levels within the organisation for the following purposes:...
Principles of Management Accounting Management Accounting employs three principles devices, viz.,- Forward Looking Principle – basis on the past and all other available data,...
The task of management accounting involves furnishing of accounting data to the management for basing its decisions on it. It also helps, in improving efficiency...
Information is the basis for decision making in an organisation. The efficiency of management depends, to a larger extent, upon the availability of regular and...
Limitations Of Financial Statements: It shows only historical cost. It does not take into account the price level changes. It considers only monetary aspects...
Trend Percentage: Trend Percentages are immensely helpful in making a comparative study of the Financial statements for several years. The method of calculating trend percentages...
Merits of ARR method: This method is also easy to understand and simple to operate The ARR method takes into account earnings over the...
Sometimes the company wishes to know the internal rate of return (IRR) ie. the yield of a capital project. The company may operate a cut-off...
The variable overhead variance is the difference between the variable overhead cost actually incurred and the cost which should have been incurred for the actual...