Activity Based Costing Advantages and Disadvantages

Activity Based Costing Advantages and Disadvantages

    What Is Activity Based Costing?

      Activity based costing (ABC) is a managerial accounting system that estimates the cost of products and services by assigning overhead costs to direct costs. This costing method assigns the cost of each activity in an organization to all products and services according to the actual consumption of the activity resource by the product or service. Read more

Management Accounting – The Basics

Management Accounting - The Basics

If you have been running your own business for longer than five minutes you will no doubt have enlisted the services of a professional accountant; hopefully you have chosen to use a qualified one who is a member of one of the accredited professional bodies and with luck you’ll have also found one that is personable and easy to talk to.

So, you understand a little about the importance of accountancy to your business, you know that your records must be kept accurately and information provided to you accountant when he asks for it; you know that accounts need to be prepared and submitted on time; you are in fact quite confident that you have the area of accounting completely sewn-up for you business, and then someone starts to talk about ‘management accounting’ and you are back on the learning curve again. Read more

Basic Balance Sheet Example – What is a Balance Sheet?

Basic Balance Sheet Example - What is a Balance Sheet?

    What Is a Balance Sheet?

      My accountant has always told me a balance sheet is a snapshot of my business assets, liabilities, equity, and net worth; and it can change dramatically from time to time. A basic balance sheet example, if completed accurately, will show all your assets, less your liabilities, plus equity . Read more

Understanding the Importance of Adjusting Journal Entries

Understanding the Importance of Adjusting Journal Entries

    What Are Adjusting Journal Entries?

      The Accounting Study Guide describes adjusting journal entries (AJEs) as An adjusting journal entry is a journal entry prepared to adjust account balances.” They also note, The only way of changing account balances is to make journal entries.”

    That pretty much tells you right off what the purpose of an AJE is, but what is the importance of adjusting journal entries, when do you utilize them, and what happens if you fail to check the necessity of AJEs before you close an accounting period?

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    Reasons for AJEs

    There are many reasons a company may need to make AJEs. Read more

Don’t Make This Error When You Order Traffic Signs

Don't Make This Error When You Order Traffic Signs

It’s often a bit daunting when ordering traffic signs, especially when doing it for the first time. But actually, it is a great deal more simple than it might appear at first – just make sure you approach a quality supplier, and they will be able to guide you through the whole process, and be able to advise you as appropriate.

Just a quick note to start with though – please note the following information only applies to those ordering traffic signs from Great Britain. Read more

Raised Bed Gardens – Should You Use Cinder Or Cedar?

Raised Bed Gardens - Should You Use Cinder Or Cedar?

Do you live in an area where the soil is less than desirable for growing a garden? Perhaps your soil is sandy. Or maybe it is dense and clay-like. Whatever the current condition for your soil, I have the solution. Raised Bed Gardens.

When we decided to double the size of our garden, I began researching how to expand it considering the poor conditions of our soil. Read more

What Are The Available Forex Exchange Services In India?

What Are The Available Forex Exchange Services In India?

Forex exchange refers to the foreign exchange market where in foreign currencies of the world are traded in an over the counter market. It is believed to be not only the largest but also the most liquid market in the world. There are a number of banks available who provide a variety of forex exchange services in India for their customers. Read more