Managerial Accounting

The article explains how to perform a break even analysis for a service business by calculating the breakeven … Read More

The article explains the cost-plus pricing method, where a product’s price is calculated by adding a profit margin … Read More

The article discusses the concept of relevant costs in short-term decision making, emphasizing the importance of identifying future … Read More

The article discusses inventory valuation under the conservatism principle, emphasizing the lower-of-cost-or-market (LCM) rule, which requires businesses to … Read More

The article explains the concept of operating leverage, distinguishing between high and low operating leverage based on a … Read More

The margin of safety is the number of units which are expected to be sold above break-even. The … Read More

The article discusses the Beyond Budgeting philosophy, which advocates replacing traditional budgeting with a more flexible, decentralized, and … Read More

The article introduces Activity-Based Budgeting (ABB), a budgeting method that focuses on business activities and resource usage rather … Read More

The article explores Kaizen budgeting, a budgeting approach rooted in the philosophy of continuous improvement, where cost reductions … Read More

The article explains Zero-Based Budgeting (ZBB), a budgeting approach where each new period starts with a clean slate, … Read More

The article discusses Rolling Budget, a budgeting method that involves continuously updating forecasts to reflect current conditions. It … Read More

The article discusses standard costing and variance analysis, focusing on their roles in estimating costs, decision-making, and performance … Read More

The article explores the various roles of budgeting within an organization, including its use in planning, communication, coordination, … Read More

The article outlines the concept of functional budget and their significance in organizational planning and control. It discusses … Read More

The article provides an overview of the budgeting process in managerial accounting, highlighting its purpose, significance, and the … Read More