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Management Accounting
It is the part of accounting such provides special-reason statements and reports to other persons and management inside the organization. The information generated via management accounting is hence for internal uses and is not guided via any type of standards or else legal requirements. Management Accounting, not like financial accounting, is proactive that is like future-oriented. It is required in creation decisions such affect the organization.
During a nutshell, cost accounting enables a business to not only determine what various processes or jobs have cost, and also for what they must have cost. It signifies where losses are happening before the work is finished and thus corrective action can be undertaken. From the previous discussion, it is then specified that cost accounting is extremely closely related to another accounting subjects especially management accounting. Actually, most people compose no distinction between cost accounting and management accounting, like the dividing line among the two is slimmer than thin.
Flexible Budget Flexible budget is a budget that is designed to change in accordance along with the level of activity attained. It includes budgeting at various levels in anti
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Variable Overhead Variance This is the dissimilarity between the variable overheads absorbed and the actual variable overheads warned. Therefore it can be described as the und
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Find Out Overhead Application Rate The given is the budget of Superb Engineering Works for the 2002 year Factory overheads Kshs 62,000
Example of Job Order Costing The given transactions were made by a company in the month of December. Direct Materials a) 8,000/- was bought on credit, out of these
how to prepare contract account
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