The Reserve Bank of India – RBI is the Central Bank of the country. It has the task of overseeing the economic as well as the monetary policy of the country. History of RBI The Royal Commission on Indian Currency and Finance, which was also known as the Hilton-Young Commission,Read More →
Before we get into the Banker customer relationship, it is imperative for us to understand what is a BANK? A Bank is an institution, incorporated with the authority and the responsibility to issue promissory notes which are to be circulated as money, also known as Bank Notes. They are alsoRead More →
The Central Bank of any country plays the most important part of governance. Formulation of financial agreements in order to create financial independence. Some of the principle responsibilities that the Central Bank has to perform are: note issue banker to the government bankers’ bank lender of the last resort controllerRead More →
Preference shares are those shares which give preferential rights to its holders to receive dividend and get back the initial investment at the time of winding up of the company. Preference shareholders as the name suggest enjoy preference over the payment of dividend. The dividend paid on these shares isRead More →
Equity Shares Capital represents the investment made by the owners of the business. They enjoy the rewards and bear the risks of ownership of the business. Equity Shareholders are paid dividends only after paying the dividend to preference shareholders and after meeting the future investment needs of the organization. AnRead More →
All businesses rely on different sources of finance to acquire funds for their business. The money which is required to run business functions is known as business funds. A business can only run smoothly when they have sufficient funds, without sufficient funds they cannot function properly. Funds are required continuouslyRead More →
Variance analysis is used to observe how well a business is performing and how close actual costs are to the standard cost. An accounting variance is defined as the difference between actual cost and standard cost. Variance analysis uses the standard versus actual amount to judge the performance. The analysisRead More →
Cost Volume Profit Analysis is a method of accounting that looks at the impact that varying levels of costs and volume have on the operating profit of a business. It helps to understand the interrelationship between cost, volume, and profit in an organization. There are three factors in Cost VolumeRead More →
In a break-even chart, the angle of incidence is formed at the break-even point where the total cost line intersects the total sales line. This angle shows the rate of profit earning of the company. Basically the angle of incidence forms when the company’s sales line intersects with the company’sRead More →
Standard costing is a technique of costing which is used to compare the costs and revenues associated with a product with the actual results and determining the variances. It analyses the productivity of an organization. Standard costing focuses on measuring the performance, controlling the deviations, inventory valuation, and deciding theRead More →
Marginal Costing is a very useful decision-making technique. It helps management to set prices, compare alternative production methods, set production activity level, close production lines, and choose which of a range of potential products to manufacture. Following are some techniques which highlight the application of marginal costing in decision making-Read More →
Marginal Costing Marginal Costing is the process of ascertaining marginal cost, by differentiating between fixed cost and variable cost, and of the effect on profit of changes in volume or type of output. In marginal costing, fixed costs are never charged to production. They are treated as period charge andRead More →