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 corporation due to the systematic approach and automation in place. Many options

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 charging a higher price. The premium pricing should not be confused with price

In the previous article, we have discussed absorption and variable costing in detail. This article is going to build upon the concepts discussed in the earlier article. If you have not yet read it, please read it before proceeding with this one. In the previous article, we discussed absorption costing. The principles of total absorption

Costing is a measurement of the actual cost of a product or service. It is a tool that allows an organization to track its costs. Costing and budgeting are two terms that are often used interchangeably. They are different, however, in the way they are used. Costing is a tool that helps you track your

Sensitivity analysis is a capital budgeting technique for computing measures of risk for a planned investment or action. It is a method for determining how sensitive a project’s value is relative to the changes in each of the variables in the analysis. It is done by changing each variable in turn and determining the effect

Varying inventory valuation methods are used by different business organizations. The most commonly used methods are FIFO (First-in First-out), LIFO (Last-in, First-out), and Weighted Average cost. Each method has its merits and demerits. LIFO method implies that the inventory purchased in most recent times is used first, and the older inventory stays in. The LIFO