Category Archives: Accounting

Classification of Cost

Cost Classification refers to the process of grouping costs according to their common characteristics such as nature of expenses, function, variability, controllability and normality. Cost Classification can be done on the basis of time, their relation with the product and accounting period. Cost classification is also made for planning and control and decision making. Thus Continue Reading »

Cost Accounting

In earlier concept, costing was defined as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as the “ application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods Continue Reading »

Management accounting by definition

Definition – (By Institute of Cost and Works Accountants of India) Management accounting is defined as a system of collection and presentation of relevant economic information relating to an enterprise for planning, controlling and decision making. (By Institute of Chartered Accountants of India)-Such of its techniques and procedures by which accounting mainly seeks to aid Continue Reading »

Management Accounting

Management Accounting – Concept, Need, Importance, and Scope, Cost Accounting: Classification of cost, Reconciliation of profit between financial and cost Accounting. Difference between Financial Accounting and cost Accounting. Introduction – Cost accounting no doubt serves the internal management by directing their attention on inefficient operations and assisting in a day-to-day control of activities of the Continue Reading »

Preparation of fund flow statement

However, the technique of cash flow statement when used in conjunction with ratio analysis serves as barometer in measuring the profitability and financial position of the business.   Preparation of fund flow statement The preparation of fund flow statement has the following steps- A) Schedule of changes in working capital- B) FUND flow Statement A) Continue Reading »

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