Angle of Incidence, Break Even Chart, Margin of Safety

In a break-even chart, the angle of incidence is formed at the break-even point where the total cost line intersects the total sales line. This angle shows the rate of profit earning of the company. Basically the angle of incidence forms when the company’s sales line intersects with the company’sRead More →

Standard costing

Standard costing is a technique of costing which is used to compare the costs and revenues associated with a product with the actual results and determining the variances. It analyses the productivity of an organization. Standard costing focuses on measuring the performance, controlling the deviations, inventory valuation, and deciding theRead More →

Cash flow analysis

Cash flow analysis is the evaluation of a company’s cash inflows and outflows from operating, financing and investing activities. It shows how the company is generating its money, where it is coming from, and what it means about the overall value of the company. Cash flow analysis should be doneRead More →

Financial Statement Analysis

Meaning of financial statement analysis The term financial statement analysis and interpretation refer to the process of determining the financial strength and weaknesses of the firm by establishing a strategic relationship between the items of the balance sheet profit and loss account and other operative data. According to John N.Read More →

DIFFERENCE BETWEEN MANAGEMENT, FINANCIAL AND COST ACCOUNTING

Difference between Management Accounting, Cost Accounting and Financial Accounting MANAGEMENT ACCOUNTING – In simple words management accounting can be defined as that tool that provides accounting information to carry out management activities such as planning, controlling, evaluating, and decision making. It helps the managers in identifying problems, formulating strategy, decision makingRead More →