Finance

Analysis of profitability

Profitability is a measure of efficiency and control. It indicates the efficiency or effectiveness with which the operations of the business are carried on. Poor operations may result in poor sales and therefore low profits. Low profitability may be due to a lack of control over expenses resulting in low Read more…

By Vishnu S Manoj, ago
Cost Accounting

Financial Accounting VS Cost Accounting

The major differences between Financial Accounting & Cost Accounting are the following Financial accounting  Cost accounting  1.Objective  Prepare profit and loss A/c & balance sheet report the owners and outsiders  Provide cost information to the management for decision making 2. Legal requirement Financial records are maintained as per the requirement Read more…

By Vishnu S Manoj, ago
Cost Accounting

Just – in – time inventory

Business concerns are giving maximum attention to reducing stock levels by establishing cardial relationship with suppliers to arrange for frequent delivery of quantities. This is called JUST-IN-TIME purchasing.Just-in-time purchasing is aimed at obtaining material delivery immediately prior to use. This can be done with the supplier’s cooperation. Buying large quantities Read more…

By Vishnu S Manoj, ago