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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".
Occurrence of Overhead Variances Overhead variances arise mainly because of the conventions of the overheads absorption process. The overhead absorption rates employed in this
Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or mainta
Purpose of Cost Accounting Information Cost accounting is employed for a number of reasons, some of that are briefly described in the given points as: a) Accounting for co
Bases of Cost Classification These various bases of cost classification are summarized in the diagram underneath as: Here, we will usually refer to either of these ter
Direct Labour Budget It represents the forecasts of indirect and direct labour requirements to meet the demands of the company throughout the budget period. Therefore the budg
an application of marginal costing
Important Aspect Regarding to Service Cost Centres The basis selected should be one that is judged to be the mainly equitable way of sharing the service costs of department
Jones Company operates within a monopolistically competitive industry. The estimated demand for its products is given by the following inverse demand function P = 1760 - 12Q
Physical Measure and Net Realizable Value Physical Measure/Unit Joint costs are assigned to the joint products according to the ratio of physical measurement of the outpu
Controllable and Non Controllable Costs Controllable costs can be influenced on the level of authority at that they are being analyzed when non-controllable costs cannot.
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