Author Archives: shma

Central Problems of an Economy

Human wants are unlimited and the resources to satisfy these wants are scarce. Every individual tries to satisfy more and more of his wants. The scarcity of resources in relation to wants give rise to the problem “how to use … Continue reading

Posted in Economics | Tagged | Leave a comment

Meaning of standard costing

Standard costing It is a predetermined cost, as it is determined in advance what should be the cost of production. When standard cost is used for the purpose of cost control it is known as standard costing. Now the question … Continue reading

Posted in Financial Accounting | Leave a comment

Top MBA colleges in the USA

Master in Business Administration (MBA) is one of the most popular and acclaimed professional courses. It prepares students for the challenging mid-level positions in the corporate world. There is a common notion that MBA graduates are able to multi-task and … Continue reading

Posted in MBA Institutes | Leave a comment

Difference between differential costing and marginal costing

meaning of Differential costing It is the change in cost, due to change in the output or change in sale. It may be increase or decrease in cost. For example present cost is 300000 if work is done by labour … Continue reading

Posted in Financial Accounting | Leave a comment

Applications of marginal costing

The following are the 4 applications of marginal costing: 1. Cost control: in marginal costing there is fixed cost as well as variable cost . fixed cost is controlled by top management and variable cost is controlled by lower management. … Continue reading

Posted in Financial Accounting | Leave a comment

4 Concepts of profit volume ratio

In the last article, we have done the objectives of profit volume ratio, today we will discuss the concepts of the same. There are four concepts in profit volume or p/v ratio:  1)      Contribution: contribution is the difference between sale … Continue reading

Posted in Financial Accounting | Leave a comment

Profit volume ratio or cost volume profit analysis ratio or break even ratio

Profit volume ratio (also commonly known as P/v ratio) is the extension of the marginal costing. It is a very important tool in the hands of policy maker to maximize their profit. It checks the relationship of cost and profit … Continue reading

Posted in Financial Accounting | Leave a comment

Features, advantages and disadvantages of marginal cost

Meaning of Marginal cost Chartered Institute of Management Accounting (CIMA) defines the term marginal cost that it excludes fixed overhead cost entirely from cost of production but charged against ‘fund’ which arises out of excess of selling price over total … Continue reading

Posted in Financial Accounting | Leave a comment

Meaning of subsidiary company

Subsidiary company Last time we have discussed the meaning and types of holding company. Today we will discuss another type pf company that is subsidiary company. The company whose shares have been acquired is subsidiary company. A company can be … Continue reading

Posted in Financial Accounting | Leave a comment

Types of holding companies

Holding company A company which acquires more than 50% equity shares of any other company in order to control the composition of its board of directors, it is called holding company. Holding company’s main aim is to eliminate the competition, … Continue reading

Posted in Financial Accounting | Leave a comment