Management Accounting
Decentralized Organization Definition: An organization in which decision making is not confined to a few top executives but rather is spread throughout the organization. Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download
Capital Gearing Ratio: Definition and Explanation: Closely related to solvency ratio is the capital gearing ratio. Capital gearing ratio is mainly used to analyze the capital structure of a company. The term capital structure refers to the relationship between the various long-term form of
Decentralization in Organizations: Learning Objectives: Define and explain the term “decentralization”. What are the advantages and disadvantages of decentralization in business organizations? What are business segments? Define and explain cost, profit, and investment centers. Definition and Explanation of Decentralization A decentralized organization is one
Factory Overhead Efficiency Variance: Learning Objective of the article: Define and explain factory overhead efficiency variance. How is FOH efficiency variance calculated? What are the reasons / causes of unfavorable overhead efficiency variance. Definition: Factory overhead efficiency variance is the difference between actual hours
Accommodation Bills of Exchange: Learning Objectives: Define and explain an accommodation bill of exchange. What is the difference between trade bill and an accommodation bill? Make journal entries in the books of drawer and acceptor when accommodation bills are used. Definition and Explanation of
Review Problem 1: Basic Present Value Computations: For each of the following situations is independent. Workout your own solution to each situation, and then check it against the solution: Situation 1: John has reached age 58. In 12 years, he plans to retire. Upon
Efficiency Definition: Getting the most output from the least amount of inputs; referred to as “doing things right,”.
Capital Expenditures: Learning Objectives: Define and explain capital expenditures / Capital Cost Expenditure means the amount spent. Any expenditure incurred for the following purposes is capital expenditure: For acquiring fixed assets such as land, building, plant and machinery, furniture and fitting and motor vehicles.
Bank Reconciliation Statement: Learning Objectives: Define and explain bank reconciliation statement. What are the reasons of disagreement of the balances of cash book and bank statement. Prepare the format of the statement. Prepare bank reconciliation statement. Definition and explanation Causes of disagreement between cash
Decentralization, Segment Reporting and Transfer Pricing: Decentralization and Segment Reporting: When an organization grows beyond a few people, it becomes impossible for the top manager to make decisions about everything. Managers have to delegate decisions to some degree to those who are at lower
Capital Budgeting Definition: The process of planning significant outlays on projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.
Effectiveness Definition: Completing activities so that organizational goals are attained; “referred to as doing the right things.”
Capital Budgeting Decisions: Learning Objectives: Evaluate the acceptability of an investment project using the net present value method. Evaluate the acceptability of an investment project using the internal rate of return method. Evaluate an investment project that has uncertain cash flows. Rank investment projects
Debtors Turnover Ratio | Accounts Receivable Turnover Ratio: A concern may sell goods on cash as well as on credit. Credit is one of the important elements of sales promotion. The volume of sales can be increased by following a liberal credit policy. The
Price Elasticity of Demand-Economists’ Approach to Pricing: Learning Objective of the Article: Define and explain the term “Price elasticity of demand”. Calculate profit maximizing price of a product of service using the price elasticity of demand and variable cost. If a company raises the
An integrated set of performance measures that is derived from and supports the organization’s strategy.
significant information significant information is one of the important accounting conventions. It implies that accounts should be prepared in such a way that all material information is clearly disclosed to the reader. The term disclosure does not imply that all information that any one
Economic value added (EVA) Definition: Economic value added is a concept similar to residual income.
