Accounting

Types of Inventory

Types of Inventory

Whether a business provides physical goods, services or a mixture of the two it will inevitably carry some types of inventory. These usually represent a major investment by a business and therefore understanding the different types and how to recognise is important. What is inventory? Inventory refers to the stocks and supplies of materials and …

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Sales Volume Variance

Sales Volume Variance

Businesses work with budgets to plan for future period operations. In very rare circumstances what was budgeted for and what actually happened are the same. In reality, more often than not there is a difference, a variance between budgeted figures and actual figures. The process of Variance analysis drills down into the numbers to find …

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Incremental Budgeting

Incremental Budgeting

Businesses work with plans and one of the most important planning tools in business is a budget. A budget is an operational plan for a business expressed in monetary terms. There four types of budgets that businesses can use namely zero-based budgeting, value proposition budgeting, activity-based budgeting and incremental budgeting. Incremental budgeting is our focus …

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Elements of Cost

Elements of Cost

Businesses have different degrees of complexity in their operations. While a reseller simply looks at cost of products to include the price they paid some businesses may have very complex cost structures due to manufacturing or other processes involved in getting the product ready to its saleable state. In addition to this service businesses differ …

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Branches of Accounting

Branches of Accounting

Accounting is the process of recording financial transactions of a business. The accounting process includes summarizing, analysing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. By looking at this definition we already have a good idea of some of the accounting branches. What Is An Accounting Branch? Different branches of accounting …

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