A budget is a financial and quantitative statement of an operational plan related to a specific time period, which is to be followed during the budgeted period in order to achieve specific financial objectives of an organization. According to I.C.W.A, “A budget is a financial and/or quantitative statement prepared priorRead More →
Inflation accounting refers to the process of adjusting the financial statements of a company to show the real financial position of the company during inflationary period. It is a special accounting technique that is used during the period of high inflation. It requires adjustments in financial statements of a companyRead More →
What is Cost? It refers to the monetary expenditure which a firm has to incur in order to purchase or hire the factors of production. It is the expense of purchasing or hiring factor services for production and other business activities. Classification of Cost / Types of Cost There areRead More →
Management Accounting may be simply defined as tools and techniques that provides accounting information to carry out management activities such as planning, controlling, evaluating and decision making. It helps managers in identifying problems, formulating strategy, decision making, optimizing the use of resources, planning and controlling. According to the Institute ofRead More →
According to Charles T Horngren, “Responsibility Accounting is a system of accounting that recognizes various responsibility centres throughout the organization and that reflects the plan of action of each oft these centres by allocating particular revenues and costs to the one having pertinent responsibility.” Responsibility Accounting is a system ofRead More →
Zero Based Budgeting Zero Based Budgeting was originally developed by Peter A Pyhrr at Texas instruments. He defined Zero Based Budgeting as “an operating, planning and budgeting process which require each manager to justify his entire budget request in detail from scratch and shifts the burden of proof to each managerRead More →