Is Owner Withdrawal a Debit or Credit? (Accounting for Owner Withdrawal)

Financial Reporting, Managerial Accounting

When individuals create a business venture, they introduce capital into it. This capital helps them grow and fund their operations. The business may either make a profit or a loss. Usually, once it goes through several accounting periods, it will accumulate some...

What is a Managerial Report? Definition, Purpose, and Key Points to include

Managerial Accounting, Performance Management

Companies and businesses prepare various types of reports. These include both external and internal documents prepared for informed decision-making and other purposes. Of these, the most prevalent external reports include the financial statements. These statements...

What Does ‘Management by Exception’ Mean? How Does It Work?

Managerial Accounting, Performance Management

Management is a very significant function in any business organization. All the departments of a business entity will collapse if there is no systematic managerial approach. Therefore, managers at different scales are very crucial to the success of every department...

What is the Difference Between Product Costs And Period Costs?

Managerial Accounting

Every business entity has many costs that need to be recognized, recorded, and given a financial statement. As a small business owner, keeping track of all costs might become a difficult task. However, cost management is a comparatively easy task for a large...

The Bottleneck In Production – What Is It and How to Deal With It?

Managerial Accounting, Performance Management

The bottleneck in production is some scarce resource that reduces the production capacity of the whole chain. The bottleneck needs to be efficiently managed to ensure profit maximization and enhanced business efficiency. It’s called a bottleneck because the neck...

Premium Pricing: What is it and How Does It Work?

Managerial Accounting

Definition: Premium pricing is when the business charges higher prices of the product than an immediate competitor. The setting of the higher price creates psychological influence in the market that the quality of the product is higher that’s why the business is...