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Differences between imputed costs and capitalised costs
Among the many categories of costs, imputed costs and capitalized costs are the most confusing. Both play a critical role in assessing and managing expenses, bu
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Corporate Accounting
Internal rate of return method for investment appraisal
The Internal Rate of Return (IRR) is one of the most common methods for investment appraisal. IRR is also known as the Internal Capitalization Rate. It is one o
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Financial Accounting Concepts
Accounting for not-for-profit organisations
A not-for-profit organisation is a business or entity established by individuals to further an end, not-for-profit and charitable. Not-for-profit organisations
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Corporate Accounting
Ratios that are likely to help the management
Ratio analysis is the process that involves analyzing and interpreting data coming from different financial accounts, such as the balance sheet and profit &
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Cost Accounting
What is Activity-Based Costing (ABC)?
Activity-based costing is a method that assigns costs to the different activities involved in making a product to allocate a company’s funds equitabl
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Tax Accounting
What is the Meaning of the Ad Valorem?
Ad valorem is a Latin phrase meaning “according to value.” In essence, it is used to describe a tax levied based on the value of the item being taxe
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Corporate Accounting
What Are Dependent and Independent Investments?
In evaluating the investment proposals presented to management, it is important to know the possible interrelationships between pairs of investment proposals. A
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Cost Accounting
Evaluation of Transfer Pricing Policies
Transfer pricing refers to the setting of prices for goods sold between different entities within the same company, often located in different countries. It is
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Corporate Accounting
What is financial reconstruction? Objectives and Impacts
Financial reconstruction refers to the process of revamping or restructuring a company’s financial situation to improve its viability and profitability. T
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Cost Accounting
What is Segment Contribution Margin
Segment Contribution Margin In the world of financial markets, segment contribution margin is used as a way to determine the margin that will be required to sel