Managerial Accounting

Business that offers a service, rather than sell a tangible good, can also calculate a breakeven point. The … Read More

A pricing method in which selling price of a product is calculated by adding a profit margin to … Read More

A key element of making any decision is having the right information. With the right information to hand, … Read More

Conservatism Accounting principle stating that a business must report all items in financial statements at amounts that lead … Read More

Operating leverage refers to relative amount of costs that are fixed and variable in the cost structure of … Read More

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

Beyond budgeting is a philosophy which seeks the abandonment of budgets. Using relative target measure this approach seeks … Read More

Activity-based budgeting is budgeting based on activities rather than units, products, or departments. An extension of ABB. Activity-based … Read More

Kaizen budgeting is budgeting based on a continuous improvement philosophy. Seeking small improvements in the operating processes which … Read More

Zero-based budgeting is an approach to budgeting that starts with a blank piece of paper every accounting period. … Read More

Rolling Budget is an approach to budgeting that uses a continuous updating approach to forecasting, the time period … Read More

Standard costs are expected costs under normal conditions, and refer to one unit of activity (for example, one unit … Read More

In this article, we’ll explain all the roles that budgets can play within an organization to understand the … Read More

Functional budgets are day-to-day operational budgets which focus on specific functions or aspects of the process or service. … Read More

What is Budgeting? A budget is a financial plan which considers income and expenditure. At its basic level, … Read More