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

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

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 and organizational success as a whole. Different management approaches and management styles are adopted across […]

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What is the Difference Between Product Costs And Period Costs?

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

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

Companies face the challenge of optimizing their production process due to a scarce resource that restricts output. The bottleneck must be managed effectively in order for businesses to achieve maximum profit and efficiency throughout all levels of the chain, just like controlling how much water can fill up an actual bottleneck! How Does Bottleneck In

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What are the Differences Between Process Costing and Job Costing?

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

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LIFO Liquidation: Everything About It You Should Know

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

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Life Cycle Costing: Definition, Processes, Example

A business incurs numerous costs over its life cycle. Different approaches are used in long-term planning for the business, profits, costs, and other departmental matters. A contemporary approach of life cycle cost is becoming more common for capital budgeting, price setting, engineering, design costs, etc. Unlike conventional costing, life cycle costing encompasses all the aspects

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LIFO Reserve: Definition, Formula Example, And How Does it Work

LIFO Reserve The financial statements of any business are greatly affected by the choice of inventory valuation method. The balance sheet, income statement, cash flow statement, and other key financial ratios reflect the choice and impact stakeholders’ decisions. There are usually three inventory valuation methods. These methods are FIFO(First In, First Out) Inventory, LIFO(Last In,

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