Accounting Management

Sunk cost is a cost that has already been incurred and, therefore, is irrelevant to the decision-making process. One example is, a company purchased a machine…

The relevant cost in decision: Making business decision requires managers to compare two or more alternative courses of action. Accountants should use two criteria to…

A discretionary cost is an expenditure for a period-specific cost or a fixed asset, which can be eliminated or reduced without having an immediate impact…

Ethical responsibilities of Management Accountants Practitioners of management accounting and financial management have an obligation to the public, their profession. the organization they serve, and…

Differences between Cost Accounting and Management Accounting The difference between cost accounting and management accounting is very crucial for the users of both the accounting…

Cost behavior: Cost behavior refers to how a cost will change as the level of activity change. Manager how to understand how costs will change…

Relations between Management Accounting and Financial Accounting Management accounting is a field of accounting that analysis and provides cost information to the internal management for…

Variable costs are always a relevant cost: Variable costs are relevant costs only if they differ in total between the alternatives under consideration. Variable costs…

Opportunity cost is an economics term that refers to the value of what you have to give up in order for choosing something else. Another…

Opportunity cost: Opportunity cost is an economics term that refers to the value of what you have to give up in order for choosing something…