Management Accounting
Bank Overdraft is a facility provided by bank to its clients such as corporations and companies to withdraw funds from the business accounts in excess of the balance available in the account. There is always a fee associated with bank overdraft and interest is
Inventory audit methods are common in those businesses or firms where inventory is treated as a form of asset and an annual auditing of inventory is done every year. The audit of the inventory is conducted by the auditors that are specialized in inventory
The above the line deduction is a kind of tax deduction that reduce the adjusted gross income of an individual or a business entity. Example of Above the Line Deduction Let’s assume that an individual A has an income of almost $100,000 per annum.
Ability to pay taxation is a kind of tax that is often assessed on the ability to pay the tax of the tax payer. Example of Ability to Pay Taxation In order to fully understand the concept the ability to pay taxation we will
Abatement can be defined as a reduction in the tax rate or tax liability that is applied to an individual or a business entity. Example of Abatement The major and most profound examples of abatement come in the case of property taxes however in
The dollar value of LIFO method is an inventory method that is a minor variation of the Last In and First Out method of inventory costing. With the help of this method a business can aggregate the cost of large bundle of inventories. In
Stake Holder value is an accounting concept that is based on the idea of creating maximum returns for all the stake holders involved in a business. Concept of Stake Holder Value The concept of stake holder value is different than that of share holder
Bond Yield can be defined as the amount of the return that an investor or a bond holder is going to enjoy on its bonds. Types of Bond Yields There are a number of different types of bond yields depending upon the types of
Accounts payable is one of the most important financial figure in a firm’s accounting and is used to calculate a number of other financial figures such as current ratio, working capital and many other financial figures. In order to calculate the above mentioned figures
Financial Gearing can be defined as a financial figure that is actually a relative proportion of debt and equity that is used by the business for performing its operations. If the high ratio of debt to the equity id calculated a business is said
Overhead ratio is the ratio that is directly related to the operating expense of the business. Operating expenses are the expenses that occur during the day to day routine of the business. We cannot compare operating expense directly to the operating income of the
Revenue Forecasting is very important in order to see the future growth and expansion of the company related to the revenue and expenses of the firm. With the help of revenue forecasting a firm can make important decisions regarding the operations and staffing of
Activity based costing is a costing technique that is based on the cost calculations of all the activities that happen while running a business operation. The activity based costing use an approach of costing where cost of all the activities is assigned to all
Financial leverage is the type of debt that a business entity or a firm utilizes to purchase more assets in order to run business operations. A business entity utilizes financial leverage in the case when it is hesitant to invest equity capital into business
The consumer price index is an index that measures the changes in the consumer price of the products. The consumer price index is calculated and published every month by Bureau of Labor Statistics. Consumer price index is one of the most technical and
Consumer staples can be defined as the household necessities or the common goods that are used in the house on regular basis. These products are used in the house on daily basis and people continue to use these things irrespective of their overall price
The international monetary fund is an international institute that controls and embodies the flow and regulation of monetary system around the world. The major objective of IMF is to ensure a balanced and profound expansion of the money around the world. Other important responsibilities
The consumer confidence index is an index that is used to measure the consumer sentiments and satisfaction regarding current or future economic conditions of a country or a city. This index is based on a monthly survey that is conducted by the Consumer Conference
