Managerial accounting

BENEFITS AND LIMITATIONS OF ABSORPTION COSTING

Benefits of using absorption costing Conforms with the accrual concept of matching costs with revenues Stock valuation complies with financial reporting standard IAS 2 By analyzing over/(under) absorption of overheads any inefficient utilization of resources may be revealed By apportioning and allocating fixed production overheads to cost centers the company can make managers more aware …

BENEFITS AND LIMITATIONS OF ABSORPTION COSTING Read More »

IMPORTANCE OF MARGINAL COSTING

Marginal costing is a technique of assigning the cost to the product in which only the variable costs are considered in calculating the cost of the product, while fixed costs are charged against the revenue of the period. The revenue arising from the excess of sales over variable costs is technically known as Contribution under …

IMPORTANCE OF MARGINAL COSTING Read More »

8 ADVANTAGES OF BUDGETARY CONTROL SYSTEM

What is a Budget? A budget refers to an estimated statement. It is prepared by companies as well as the government. It is for the purpose of attaining some goal. Budget can be defined as a financial and/or quantitative statement prepared and approved prior to a defined period of time of the policy to be …

8 ADVANTAGES OF BUDGETARY CONTROL SYSTEM Read More »

6 COMPONENTS OF THE BUDGETARY CONTROL SYSTEM AND TYPES OF BUDGETS

The policy of a business for a defined period is represented by the master budget, the details of which are given in a number of individual budgets called functional budgets. These functional budgets are broadly grouped as physical, cost and profit budgets. Physical Budgets Those budgets which contains information in terms of physical units about …

6 COMPONENTS OF THE BUDGETARY CONTROL SYSTEM AND TYPES OF BUDGETS Read More »

WHAT IS THE IMPORTANCE OF VOUCHING IN AUDITING?

vouching is the verification of entries in the books of accounts by examination of documentary evidence or vouchers such as invoices, debit, and credit notes. it means testing the truth of items appearing in the books of original entry. in vouching we try to verify if the numbers in ledgers reflect the real transaction and …

WHAT IS THE IMPORTANCE OF VOUCHING IN AUDITING? Read More »

LUSAKA STOCK EXCHANGE

Lusaka stock exchange (LUSE) was opened on 21st February 1994 as a non-profit organization limited company The stock exchange is a highly organized market shares and other securities are bought and sold Functions of the stock exchange Provide a market where stocks, shares can be sold or bought Enable companies to raise their capital required …

LUSAKA STOCK EXCHANGE Read More »

%d bloggers like this: