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In this section we have tried to develop the concept of flow of funds inside the organization. Starting along with the funds requirement for an organization, we have tried to trace the sources and utilizations of funds.
We tried to examine the significant sources of funds that are: the operations, long-term borrowings, sale of fixed assets and issue of new capital. Likewise, significant uses of funds were traced to acquisition of fixed assets, payment of dividends, repayment of capital and loans. The whole exercise reveals the areas wherein funds are deployed and the source from that they are acquired. At last, we learned how to go about doing the funds flow analysis along with the assist of published accounting information.
We learnt individuality between fund and cash as also cash flow statement and funds flow statement. The significance of cash and cash flow statement was dwelt upon. Our discussion centered on cash flow statement "profit basis" and on "cash basis". We learnt how to go regarding doing the cash flow analysis with the assist of accounting information and at last presenting the cash flows in the form of a "cash flow statement".
Raw Materials: Manufacturing Overhead Bal 1/1: 36,000 Credits: ? Debits: 383,000 Credits: ? Debits: 470,000 Bal: 12/3: 156,000 Work in Process: Bal 1/1: 73,000 Credits: 770,000
sorption costing
annual usage rs 160000@ 40 per unit, cost of placing and receiving one order rs 200:annual carrying cost ; 25% of inventory value
Reasons for Cost Allocation 1. To provide comparison along with externally provided services: It helps in assessing where to continue the contact or service outsiders. 2.
Opportunity Costs Are Relevant Costs Opportunity cost introduces an additional concept that is not available like part of normal cost analysis in the accounting record system.
some clarificationon how to compute closing stock and openning stock using marginal costing technique and absorption.
You are considering starting a walk-in-clinic. Your financial projections for the first year of operations are as follows: Revenues (10,000 visits) $400
what is a cost sheet? what are its advantages?
COST PROFIT VOLUME ANALYSIS Cost profit volume (CVP) analysis is an essential tool for profit planning. It can be explained as - ' a managerial tool showing the relationship a
These should be distinguished from estimated liabilities. Estimated liabilities are identified liabilities where the amount is uncertain. Contingent liabilities conversely are not
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