Capital Budgeting Process
Capital budgeting is the process that a business uses to determine which proposed fixed asset purchases it should accept, and which should be declined. This… Read More »Capital Budgeting Process
Business Accounts
Investment Decision/Capital budgeting:Objectives
Investment Decision Is also known as Capital budgeting. The word Investment refers to the expenditure which is required to be made in connection with the… Read More »Investment Decision/Capital budgeting:Objectives
What is Leverage and Types of Leverage
Concept of Leverage: Leverage means use of assets and sources of funds having fixed costs in order to increase the potential returns to shareholders. The… Read More »What is Leverage and Types of Leverage
Approaches for Capital Structure Theories
Traditional Approach This traditional theory approach advocated by financial experts Ezta Solomon and Fred Weston. It is also known as the Intermediate approach. The traditional approach to capital structure advocates… Read More »Approaches for Capital Structure Theories
Capital Structure Theories or Approach
Capital structure theory refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm’s capital structure… Read More »Capital Structure Theories or Approach
What is Capital Structure?
The capital structure represents the relationship among different kinds of long-term capital. Normally, a firm raises long-term capital through the issue of common shares, sometimes… Read More »What is Capital Structure?
Classification of Costs
Cost classification is the process of grouping costs according to their common characteristics.There are various ways of classifying costs.Costs may be classified according to- 1.… Read More »Classification of Costs
Difference between Cost & Management accounts
Cost Accounting: It is a process of recording, classifying, analyzing, summarizing allocating, and evaluating various alternative courses of action and control of costs in the organization.… Read More »Difference between Cost & Management accounts
Management Accounting Advantages
Management Accounting Advantages: Proper Planning: The management can prepare the plan and execute the same for the effective operation of a business. In this context,… Read More »Management Accounting Advantages
What are the Functions of Management Accounting
Functions of Management Accounting In management accounting or managerial accounting, managers use the provisions of accounting information to inform themselves better before they decide matters… Read More »What are the Functions of Management Accounting