Managerial Accounting

Pay What You Want Pricing” (PWYWP) is a pricing strategy where buyers can pay any price they choose for a product or service.  This can be as low as nothing or as high as they are willing to pay. Here are some key features and considerations of this pricing model: How Does Pay What You […]

Definition: Average Fixed Cost (AFC) refers to the fixed costs of production divided by the quantity of output produced. Fixed costs are those that do not vary with the production level.  These may include rent, salaries of permanent staff, and insurance. These costs remain constant whether the firm produces nothing, a little, or a lot.

Definition Opportunity cost is the potential benefit a company or investor buyer may have gotten had they chosen this opportunity over others. It means how much of a potential benefit or gain in investment is missed by a person had they not skipped that opportunity. Opportunity cost is a term that plays a major role

The term “overheads” refers to any expenses occurring within a business. However, it does not cover every expenditure. Instead, it only applies to expenses not related to a product or service directly. These may still be a part of the production process or relate to those items. However, companies cannot allocate them to a single

Cash transactions are one of the most common activities within any company. Usually, these involve paying various parties or receiving cash from them. However, most companies have transferred these transactions to their banks. This way, they have automated the system or made it smoother. However, companies still need cash at hand to handle various transactions.

The accounting field has progressed significantly over the past. The introduction of standardized bodies and procedures has helped this field go global. On top of that, using technology in this area has also enhanced its reach greatly. Digital technology has played a vital role in helping the field progress even further. It contributed to more

A business entity is incurring different expenses, direct and indirect, to keep the cycle running. Some expenses are direct to the core product or service of the business. While other expenses are incurred for selling the products and are not directly part of the production process. Material and labor are included in the direct costs

Accounting incorporates various tasks that companies must perform to deal with financial transactions. This process involves recording, summarizing, analyzing, and reporting financial information. However, the most relevant branch of accounting is financial accounting. Within this branch, companies seek to prepare financial statements. These statements provide details of a company’s operations and activities for a period.

Decision-making is a crucial part of any management team. These decisions usually relate to the activities and operation of a company. For most companies, the decisions made by managers are crucial in helping increase profitability and reduce costs. Even fundamental functions in a company will fail without the right decisions made by the management. The

The term “accounting” often gets associated with financial accounting. For most users, it is the primary branch in the accounting field. It usually involves the financial statements and reporting information about a fiscal year. This process creates the primary communication source between companies and their stakeholders. Financial accounting has several advantages, including its critical contribution