Accounting

Providing Knowledge

  • Transferred-in costs

    Transferred-in costs Many Process-Costing systems have two or more departments or processes in the production cycle. As units move from one department to another, related costs are transferred monthly through journal entries. Transferred-in costs are also known as previous-department costs, which can be explained as costs which were incurred in previous departments and to be […]

  • Reciprocal Method

    Reciprocal Method This method is different from direct method and step down method. The reciprocal method allocates support department cost to operating departments by completely recognizing the shared services provided by all the support departments of the organization. We can explain this concept by taking an example of the organization set up, that is, the […]

  • Sales Variances

    Sales Variances Sales variance analysis helps management to determine the cause. it control the variances and it guides management to move towards a better, profitable and informed management of the resources. Now there are different types of variance analysis. Which help management on a different level in analyzing the sales situation. At level one, we […]

  • Budgeting Activity

    Budgeting Activity An organization budget can be broken down in to two main parts, one being the operating budget and the other being the financial budget. The operating budget mainly directs or we can say revolves around the revenue budget as everything is connected with the expected sales an organization is likely to have. Now the […]

  • Contribution Margin vs. Gross Profit Comparative Statements

    Contribution Margin vs. Gross Profit Comparative Statements There are two ways to present the operations of the company in to statement forms. Both are these methods have their separate usage. Contribution margin approach is usually meant for interpretations of results and future planning by the internal management of the company, while the gross profit statement […]

  • Groups and Teams

    Groups and Teams: Increasing Cooperation and Reducing Conflict Groups versus Teams When individuals come together they form a group, this group can be formal for doing something constructive or informal for pleasure like friendship. A formal group is usually seen in organizations where they are directed to achieve some common objective like organizational goals. However […]

  • Hedge Accounting

    Hedge Accounting Hedging is making an investment to mitigate the risk involved in adverse price fluctuations of assets. Generally, hedging consists of taking and offsetting position in security e.g. future contracts. While hedging accounting is a method of accounting in which the entries for the ownership of a security and the opposing hedge is treated […]

  • Chartered Accountant

    Chartered Accountant Accountancy and finance is the basic requirement of how a business in operated around the world. Accountants are specialist of their field and they have been assisting businesses with their advice and suggestions over the financial and monetary information to the all sizes and types of companies over many years. Chartered accountants understand […]