Managerial Accounting

Managerial accounting involve with costs identifying, costs allocating, cost calculating, costs measuring, cost analysing and costs interpreting. There are many topics that we cover related to managerial accounting or costs accounting:

  • Activities Base Costing
  • Absorption Costing
  • Cost accounting
  • Close allocation
  • Variance Analysis

Cost Allocation: Definition, and Example on How the cost allocation works

To run a profitable business, you have to make sure that your prices are high enough to cover all your expenses and give you profits at the same time. Most business and company owners use cost allocation to allocate the costs of specific items. That includes products, departments, materials, overhead costs, etc. Cost allocation is …

Cost Allocation: Definition, and Example on How the cost allocation works Read More »

What is Joint Cost? – Explanation, Objective Advantages, and Disadvantages

In many industries, a common manufacturing process generates multiple products, such products derived by this process are called Joint products or By-products. It is in their very nature that Joint products or By-products can’t be produced individually. While manufacturing, there comes the point where those yielded products get differentiated from each other. That very point …

What is Joint Cost? – Explanation, Objective Advantages, and Disadvantages Read More »

Price Discrimination – What is it and How Does It Work

Price discrimination Price discrimination is when the business charges different prices to different groups of people. The business may define different groups based on the attribution/characteristics of the customers within a certain group. The price discrimination is carried based on the expectation of the business from the seller that how much value they perceive from …

Price Discrimination – What is it and How Does It Work Read More »

Linear Programming in Management Accounting (Explained)

Linear programming is a management/mathematical approach to find the best outcome, giving a set of limited resources. Thousands of businesses emerge every year, as more people aim to be business owners. Most of these businesses do not experience growth and eventually fold up due to failure in management accounting. How should businesses manage production challenges …

Linear Programming in Management Accounting (Explained) Read More »