Financial Analysis of Sainsbury’s
Sainsbury’s is a British grocery store giant, the second biggest chain in the UK. Founded in 1869, it boasts a protracted record of providing groceries and family necessities. Sainsbury’s offers various keep codecs, from big supermarkets to comfort stores. They are recognised for his or her personal-emblem merchandise alongside popular labels. Beyond groceries, Sainsbury’s owns […]
IGNOU ECO-14 Assignment 2019-20 [Unsolved]
ECO – 14: Accountancy – II 1. What are the three systems of maintaining the accounts of a dependent branch and describe how is profit ascertained under each system? Explain how a branch stock account helps in keeping effective control over the branch stock. (20) 2. Jalani Distributors sold three light commercial vans to Jain […]
Meaning and Types of Solvency Ratios
Solvency ratios are financial measurements used to assess a company’s ability to meet its long-term obligations and remain financially stable. These ratios evaluate a company’s ability to generate adequate cash flows to cover its debt and other financial obligations. By analyzing solvency ratios, investors and lenders can gauge the financial health and stability of a […]
Incomplete records system is unscientific and Inaccurate
An incomplete records system is unscientific, incomplete, inaccurate and unsystematic. Explain An incomplete records system is unscientific, incomplete, inaccurate, and unsystematic because it does not follow the accepted principles and standards of accounting. This can lead to a number of problems, including: Unscientific: An incomplete records system does not use the scientific principles of data collection, […]
Meaning and Definition of Absorption Costing
Absorption costing is a method of costing that includes all costs incurred in the production process, including both fixed and variable costs. Absorption costing, also known as full costing, is conventional in ascertaining costs. It is the practice of charging all variable and fixed costs to the operation, processes, and products. It is the oldest and […]
What is the Price Yield Relationship?
The Price Yield Relationship (also known as the price yield equation) refers to the relationship between the price of a security and its yield. The price yield relationship is an inverse relationship between the price of a security and its yield. The higher the security price, the lower the yield, and vice versa. In other […]
Definition of Overhead in Cost Accounting
Overhead is an essential category to be tracked and thus controlled in the cost accounting system for effective management of expenses because profitable operations are only sustainable if cost accounting is managed along a profitable line and also for operational efficiency. Overhead is the indirect cost incurred by the use of a business and cannot […]
Comparison between Standard Costing and Budgetary Control
Standard costing and budgetary control are two commonly used tools in the field of cost management. These methods play a significant role in helping organizations monitor their financial performance and make informed decisions. Standard costing involves setting predetermined costs for different activities, while budgetary control focuses on the comparison of actual results with planned budgets. […]
Marginal Costing and Absorption Costing difference
Absorption costing and marginal costing are two basic methods of cost accounting. Both the methods assist companies in ascertaining product costs, profitability, and pricing policies. They differ in their treatment of fixed costs, which impacts financial reporting and decision-making. In this post, we are going to discuss the difference between both costing approaches in cost […]
Difference between Absorption Costing and Marginal Costing
Absorption costing and marginal costing are two costing approaches that determine what should be the cost of a product. Let’s understand their differences. Absorption costing Absorption costing is allocating (absorbing) the cost of a product over the units produced and sold. It is possible to calculate an absorption cost through direct and indirect methods. Absorption […]