Accounting Theory

The cost benefit principle clutches that the cost of providing information via the financial statements must not go beyond its effectiveness to readers. This is…

Variable and absorption costing are usually two different costing methods. Most successful companies on earth use both the techniques. Variable costing and absorption costing are…

Along with direct labor charges, there are other costs linked to direct labor personnel. These are idle time, overtime premium along with fringe benefits which…

Costs of quality, as well as quality costs, will not mean the use of expensive or extremely high-quality materials to manufacture an item. The term…

Costs might be classified as differential, opportunity and also sunk costs. This classification is made for decision making requirements. Explanation and degrees of differential, opportunity…

The cost benefit principle holds that the cost of maintaining information via the financial statements ought to not exceed its effectiveness to readers.   This…

Working capital means current assets less current liabilities. It is utilized in some ratios to estimate the general liquidity of a company; that is, the…

Lean business model is built to reduce waste running a business processes. If a corporation thoroughly integrates lean concepts into the operations, a likely outcome…

Debt ratio measure the actual extent to which a lending broker uses debt to fund its operations, as well as the ability of the entity…

A retention ratio could be the proportion of net gain retained to fund the operational needs of a business. When there exists a high retention…