STANDARD COSTING
Standard costing is a technique that establishes predetermined estimates of the cost of products and services and compares these costs with the actual costs as they incur. Standard costing can be considered as a yardstick to measure the efficiency with the actual cost incurred. Hence, standard costing is system of costing which makes a comparison between the standard cost of each product or service with...
Make Or Buy Decisions
Make Or Buy Decisions
A Company may be producing a product by itself or receive an offer from an outside supplier to supply that product. Similarly, a firm may be buy a product from outside or may make/produced/manufacture that product in the firm itsel...
Continuous Audit: Meaning, Advantages & Disadvantages Of Continuous Audit And Steps for Effectiveness
Continuous Audit
What is a Continuous Audit?
Continuous audit or a detailed audit is an audit which involves a detailed examination of books of accounts at regular intervals i.e. monthly, quarterly or yearly. The auditor visits clients at regular intervals during the financial year and checks each and every transaction.
An auditor checks the profit and loss account and the balance sheet at the end of the year. A continuous audit is...
Computerized Accounting System VS Manual Accounting System
Differences Between Computerized Accounting System And Manual Accounting System
Computerized System:
1. Starts with the account balances in the ledger at the beginning of the period.
2. Analyzes and classifies business transactions by type. Access appropriate menus for data entry.
3. Computer automatically posts transactions as a batch or when entered on-line.
4. The unadjusted balance are available immediately after each posting.
5. The trial...
Taxation: Basis Period Of Assessment, Capital Allowance And Loss Relief
The following topics will be discussed in this series, those topics are: -
a. Basis period of assessment
b. Capital allowance
c. Loss relief.
Assessable Profit
The accounting profit arrived at in the trading, profit & loss account is not usually the same as “tax profit”. This is because...
Taxation: Capital Allowance And Loss Relief
To read the previous article on basis period of assessment, please click here
CAPITAL ALLOWANCE
Definition
Capital allowance are a form of relief granted to any company which has incurred qualifying capital expenditure during a basis period in respect of fixed assets in use at the end of the basis period, for the purpose of a trade or business. Capital allowance is granted in lieu of depreciation. Capital allowance covers initial allowance,...
Difference Between Internal And External Recruitment
INTRODUCTION
Internal recruitment is concerned with recruiting people internally through transfer and promotion and external recruitment is associated with recruiting people externally through advertisement, employees referrals and other external sources.
A comparison between internal recruitment and external recruitment is as follows:
1....
External Recruitment: Sources, Methods, Advantages And Disadvantages
INTRODUCTION
External sources refer to recruiting employees from outside the organization. In fact, a pool of qualified candidates lie outside the organization. Firms cannot always get all required members from their current staff. In such a situation, an arrangement is made to attract qualified candidates from other sources.
An organization...
Internal Recruitment: Aspects, Methods And Advantages
Internal Sources Of Recruitment
Introduction
Internal recruiting refers to recruiting employees from within the organization. In deciding requirement of employees, initial consideration should be given to a company's current employees, which is concerned with internal recruitmen...
Recruitment: Definition, Processes And Factors Affecting It
INTRODUCTION
Recruitment is a process of identifying and preparing potential candidates to fill the application form. It is an initial phase of employment process. Recruitment inspires the potential candidates to fill the application form for employment. After estimating the need and requirement of human resource in an organization, the HR manager ...
Job Evaluation: Importance And Processes
JOB EVALUATION
Introduction
Job evaluation is the process of establishing values of
different jobs. Job evaluation provides a basis for ranking different jobs and developing a pay structure for them. Evaluation of job is the
process of describing the duties, authority relationships, skills,
condition...
Accounting Treatment Of Consignment
Valuation Of Unsold Stock In Accounting For Consignment Of Goods
Introduction
The stock lying in the hands of consignee at the end of accounting year is valued at cost or market price whichever is less. The cost of unsold stock or closing stock should be valued at cost to the consignor plus proportionate non-recurring expenses incurred by the consignor and...
Introduction To Consignment Account
INTRODUCTION
Maximization of profit is the main objective of each and every business. For the fulfillment of this objective, the firm has to increase the sale of goods. For this purpose, the firm has to push its sales by all possible means. The sales can be increased by opening different branches within the territory or abroad. Opening a branch is a costlier affair....
Preparation Of Liquidator's Final Statement
INTRODUCTION
The liquidator is required to keep proper books to record receipt and payment which is known as liquidator's final statement, in every mode of winding up. The liquidator has to submit a report together with the audited final accounts to the CRO. The liquidator has to submit the statement to the court in the case...
Meaning Of Liquidation, Reasons For Liquidation And Calculation Of Liquidator's Remuneration
LIQUIDATION
Meaning Of Liquidation
A company is an artificial person or body created by law and only the law can dissolve it. The legal procedure by which the corporate life of a company can be brought to an end is known as liquidation. The liquidation of company is defined as " the termination of legal existence of company by closing its business". Liquidation is...
