Types of Cost / Classification of Costs

What is Cost? It refers to the monetary expenditure which a firm has to incur in order to purchase or hire the factors of production. It is the expense of purchasing or hiring factor services for production and other business activities. Classification of Cost / Types of Cost There are various types of cost: On the basis of Nature of […]

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Management Accounting- Meaning,Nature, Functions,Advantages & Disadvantages

Management Accounting   According to the Institute of Charted Accountants of England “any form of accounting which enables a business to be conducted more efficiently is Management Accounting” According to Institute of Cost and Work Accounts of India (ICWA) “Management Accounting is a system of collection and presentation of relevant economic information relating to an enterprise for planning controlling and […]

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Responsibility Accounting -Meaning, Pre-requisites, Steps involved in Responsibility Accounting, Responsibility Centres, Advantages and Limitations

According to Charles T Horngren, “Responsibility Accounting is a system of accounting that recognizes various responsibility centres throughout the organization and that reflects the plan of action of each oft these centres by allocating particular revenues and costs to the one having pertinent responsibility.” Responsibility Accounting is a system of control wherein costs are identified with the person responsible for […]

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Zero Based Budgeting – Features, Process, Advantages and Disadvantages

Zero Based Budgeting Zero Based Budgeting was originally developed by Peter A Pyhrr at Texas instruments.  He defined Zero Based Budgeting as “an operating, planning and budgeting process which require each manager to justify his entire budget request in detail from scratch and shifts the burden of proof to each manager to justify why he should spend any money at all.” […]

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