What is Margin of Safety?
The margin of safety is the number of units which are expected to be sold above break-even. The … Read More
12 Beyond Budgeting Principles Explained
The article discusses the Beyond Budgeting philosophy, which advocates replacing traditional budgeting with a more flexible, decentralized, and … Read More
What is Activity-Based Budgeting (ABB)?
The article introduces Activity-Based Budgeting (ABB), a budgeting method that focuses on business activities and resource usage rather … Read More
What is Kaizen budgeting?
The article explores Kaizen budgeting, a budgeting approach rooted in the philosophy of continuous improvement, where cost reductions … Read More
What is Zero-Based Budgeting (ZBB)?
The article explains Zero-Based Budgeting (ZBB), a budgeting approach where each new period starts with a clean slate, … Read More
What is Rolling Budget?
The article discusses Rolling Budget, a budgeting method that involves continuously updating forecasts to reflect current conditions. It … Read More
Present Value
The article explains the concept of present value, highlighting how future cash flows are valued today based on … Read More
Future Value
The article discusses the concept of future value, explaining how the value of money changes over time due … Read More
Time Value of Money (TVM)
The article introduces the time value of money (TVM), emphasizing the principle that money holds greater value today … Read More
Standard Costing and Variance Analysis
The article discusses standard costing and variance analysis, focusing on their roles in estimating costs, decision-making, and performance … Read More
Roles of Budgeting
The article explores the various roles of budgeting within an organization, including its use in planning, communication, coordination, … Read More
Functional Budget and Its Types
The article outlines the concept of functional budget and their significance in organizational planning and control. It discusses … Read More
Revenue Recognition and Matching Principle Explained
The article explains key accounting principles under accrual accounting, focusing on the revenue recognition and matching principles. It … Read More
What Is Financial Management?
The article provides an overview of financial management, emphasizing its role in raising funds, managing assets, and maximizing … Read More
Trial Balance
The article provides an overview of the trial balance, explaining its role in verifying that total debits equal … Read More