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Management vs. Cost Accounting
Management accounting collects data from cost accounting and financial accounting. Thereafter, it analyzes and interprets…
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Dual Aspect Concept
There must be a double entry to complete any financial transaction, means debit should be…
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Objectives of Management Accounting
Let us go through the objectives of management accounting: Planning and Formulating Policies In the…
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Characteristics of Management Accounting
Management accounting provides data to the management on the basis of which they take decisions…
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Management Accounting – Introduction
Institute of Chartered Accountants of England and Wales defines management accounting as: Any worm of…
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Break-Even Chart
Break-Even Chart is the most useful graphical representation of marginal costing. It converts accounting data…
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Marginal Cost Equation
Equations for elements of cost are as follows: Sales = Variable costs + Fixed Expenses…
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Cost Accounting – CVP Analysis
Cost-Volume-Profit (CVP) Analysis is also known as Break–Even Analysis. Every business organization works to maximize…
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Direct Labor Variance
Direct labor variances are categorized as follows: ● Labor Cost Variance ● Labor Rate of Pay Variance…
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Direct Material Variance
Material variances can be of the following categories: ● Material Cost Variance ● Material Price Variance ● Material…