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Cost Accounting
Meaning and Explanation of Service Costing
The term “service costing” refers to the method of calculating the cost per unit of service given. It also refers to the price of particular functio
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Financial Accounting Concepts
What are Liquidity Ratios? – Meaning and Formula
Liquidity ratios measure the short-term financial solvency of a business. Here the short term refers to a period of 12 months or lesser. Investors typically use
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Cost Accounting
What is Fixed Overhead Volume Variance?
The fixed overhead volume variance is also referred to as the production volume variation because this variance is dependent on production volume. The volume va
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Financial Accounting Concepts
What are Current Liabilities? Meaning and Types
Liabilities are the obligations to pay money, render services, or deliver goods at a later date as a result of a previous transaction. This definition covers al
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Financial Accounting Concepts
What is the Modified Internal Rate of Return (MIRR)?
In an effort to solve some of the shortcomings of the IRR method, financial analysts have devised an alternate evaluation procedure that is comparable to the IR
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Cost Accounting
What is Throughput Costing? When to Choose it?
Throughput costing is a system based on the fact that most production costs will not vary at the level of the individual unit produced. Throughput costing, also
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Financial Accounting Concepts
What Does Mean Substance Over Form?
In accounting, the phrase “substance over form” refers to a preference for the underlying truth of a transaction above its legal form. The accountin
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Financial Accounting Concepts
What is Trade Discount in Accounting?
In accounting, a trade discount is a reduction in price a manufacturer or wholesaler offers a trade buyer on the list price of goods. Offering trade discounts i
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Financial Accounting Concepts
Capital Expenditure Vs Revenue expenditures in Accounting
Capital Expenditure Capital expenditures comprise costs incurred for the acquisition of a fixed asset, such as land, a building, a car, machinery, etc. It also
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Financial Accounting Concepts
What is the Definition of Revenue in Accounting?
In accounting, revenue is defined as the total value of all money and other assets received by a company over a period of time. This can include money received