Managing Variable Costs
Jennifer edwards As the name indicates variable costs are the costs that fluctuate or change with the number of goods produced by the business. Variable costs along with the fixed costs comprise…
Inventory Valuation Methods
There are a number of inventory valuation methods that can be used according to the business requirements and managerial decisions. Inventory valuation methods are named as LIFO, FIFO and…
Relevant Costing Technique
It is a type of costing method in accounting where the alternatives are compared and their difference is calculated to consider. Relevant costing technique helps managers to make decisions on…
Cost Volume Profit Analysis
Cost volume profit analysis is a method of analyzing the affect of transition of cost and volume on the net income and operating income of a business. It is a…
External and Internal Balance Sheet
A balance sheet is a financial statement of a business that can be use for internal and external purposes. The preparation of both internal and external balance sheets is for…
How to report Profit, Losses and Cash flows
There are different kinds of financial statements for reporting cash flows in a business such as income statement and statement of cash flows. These cash flows statements are different from…
Relationship between Account Receivables and External Balance Sheet
Account receivable is an integral account for the businesses that make sales on credit. A business may have thousands of account receivables from hundreds and thousands of customers. All the…
Intangible Assets
Intangible assets are those assets that do not exist physically still they are very much important for a business. These are the long term resources that do not have a…
Types of Business Costs
It is very important to distinguish or differentiate business costs as they help in recognizes the cost figures that your business produce by selling goods or services. There are…
Affect of Assets and Liabilities on Business Cash Flow
A change in assets or liabilities of a business can positively or negatively affect the cash flow of the particular business. Sometimes change in assets and liabilities may result in…
Accounting Equation
Accounting equation can be termed as the foundation stone of the modern day accounting. The financial position of a business is affected by its financial transactions and these financial transactions…
Accounting Methods
Accounting Methods Accounting methods are the set of rules or specific procedures through which a business keeps its financial records and transform these records into financial reports. Accounting methods are…
Chart of Accounts
For a business or a company the chart of accounts may be described as an index or list of those financial accounts that a business utilizes in its accounting…
Accounting Cycle
Understanding an accounting cycle can be one of the most interesting things in the basic accounting. The workflow of accounting is always circular so it is recommended to understand the…
Budgeting Methods: How to choose one for your business
A budget can be defined as a written estimate of the future financial performance of a business, project or a particular financial unit. With the help of budgeting one can…
Bookkeeping
Maintaining the record of financial transactions and financial day to day business activities is called bookkeeping. The basic purpose of bookkeeping is to maintain the financial records of a business…
Expense
Expense can be explained as costs or expenditure maintained by a company for a certain accounting period to earn certain amount of revenues. Mostly expenses are incurred through the operating…
Revenue
Revenue of a company is the total sum of money that a company actually holds. It may be received by providing services of by selling particular merchandise of the company.…