Tag Archives | Notes

Notes on Spoilage | Materials

The below mentioned article provides a note on accounting and control of spoilage. Meaning of Spoilage: Spoilage is the production that fails to meet quality or dimensional requirements and these are so damaged in manufacturing operations that they are not capable of rectification economically and hence taken out of the process and disposed off without […]

Production Overhead | Accounting

The below mentioned article provides a note on production overhead. The production cost is inclusive of all direct material, direct labour, direct expenses and manufacturing expenses. The manufacturing expenses is inclusive of all indirect materials, indirect labour and indirect expenses concerned with manufacturing activity which starts with supply of materials and ends with primary packing […]

Administration Overhead | Overheads Accounting

The below mentioned article provides a note on administration overhead. According to ICMA Terminology, Administrative overhead is defined as “the sum of those costs of general management and of secretarial accounting and administrative services, which cannot be directly related to the production, marketing, research or development functions of the enterprise.” The administration cost is incurred […]

Notes on Scrap | Materials

The below mentioned article provides a note on scrap. Scrap is the residue material that has a recovery value. It is incidental residue from the materials used in manufacturing operations which is recoverable and measurable without processing. Accounting of Scrap: The accounting treatment of scrap is based on the following considerations: (a) If the value […]

Notes on Defectives | Materials

The below mentioned article provides a note on defectives. Defectives represent the part of production that does not meet dimensional or quality specifica­tions of a product but which can be reworked by additional application of material, labour and/ or processing and made it into saleable condition either on first or seconds depending upon the characteristic […]

Accounting Notes on Waste | Materials

The below mentioned article provides a note on waste. Meaning of Waste: Waste is a material loss during production or storage due to evaporation, chemical reaction, unrecoverable residue, shrinkage etc., wastage may be visible or invisible wastage. Wastage may be normal waste incidental to manufacturing activities or abnormal waste which is in excess of material […]

Du Pont Analysis | Financial Management

The below mentioned article provides a note on du pont analysis. The Du Pont company of USA has introduced a system of financial analysis which has received a wider acceptance. The Du Pont Chart is a chart of financial ratios, which analyses the net profit margin in terms of asset turnover. The Du Pont analysis […]

Cash Budgeting | Financial Management

The below mentioned article provides a study note on cash budgeting. Points to be Considered in Cash Budgeting: Cash budget is a detailed budget of income and cash expenditure incorporating both revenue and capital items. The cash flow budget should be prepared in the same format in which the actual position is to be presented. […]

Notes on Contra-Cyclical Budget | Fiscal Policy

In modern days budget is recognized as an efficient fiscal instru­ment in the hands of the Finance Minister for materializing the prime objective of economic growth and development. However the ortho­dox economists refuse to accept the efficacy of the budget. For them budget was only a financial statement showing the revenue and expenditure of the […]

Management of Joint Stock Companies

General: The internal management of companies is carried on according to the articles of association. The articles define the relationship between members and between members and the company. On this basis, members are bound to each other but neither the company nor the members are bound to outsiders. Articles may supplement the terms of a […]

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