Accountancy & Financial matters Management blogs

                COGS or Cost of Goods Sold is the a complete statement in which all the direct and indirect  Cost contributions are take place which are directly or indirectly involve in the complete production. It starts with the beginning inventory add the new purchases and fright charges then the direct raw material , direct labor costs and factory over heads and all the other relevant cost which are show bellow in the example picture are the part of the complete production. That all  cost contributions and subtractions give us the information about complete manufacturing activity. The formula for the Cost of Goods Sold is as follows:   Key Points of COGS:                 These are the key points which we use to make that Cost of Goods Sold Statement. But at the start of the  COGS we must need to ...

                Cost Accounting is a sub discipline of Accountancy. That sub discipline tell us who to cost a product or service and the whole accounting activity. Cost Accounting working parallel with Managerial Accounting another sub discipline. Both sub disciplines have a very waste vocabulary some of the important vocabularies of cost accounting are here which is very vital to know every one for his professional and daily life use. All the cost accounting based on these important vocabularies that helps the users to know the costs with their real affects and correlation among the activities in the  cost accounting.   There are many good understandable definitions available in many other books but I tried my best to make them shorter and understandable for every one like the new comers in this field.But the conciseness of these vocabularies can not reduce their importance in the cost ...

                Costs attached to all activities, rather than goods. We have many examples for calculating the Activity-Based Costing or ABC but the most appropriate example is from SME based business activities which have variety of product to serve to its customers and they need to calculate the each activity cost. Explanation with Example: If we take the example of a burger point where the staff serving with two product burger and coca cola or Pepsi cola. The total production cost for both product is with raw material is PKR 58.00 they are paying the electricity and gas charges also for their operations to make the burger and to cool their fizzy drinks bottles. The extra cost of production of gas and electricity is 5 rupees as example we don’t know what is the electricity charges per unit WAPDA charging to their consumers and same for gas charges we have no information what the OGRA charging per c...

                    Cost Accounting is a sub discipline of accountancy. That field of accountancy supports the other two sub disciplines finance and managerial accountancy. Manufacturing and Non-Manufacturing costs are the two main concerns of accountancy. Manufacturing cost directly relates to the manufacturing or production activities. It further divides in three main parts, Direct Material Cost, Direct Labor Cost and Manufacturing Overhead Cost. Let I explain all these costs one-by-one. Direct Material Cost:                 Direct Material Cost is that cost which is available to consume over raw materials for that purpose per unit cost is the sub terminology use for manufacturing goods from raw material. Direct Labor Cost:                 ...

                Net Worth is the actual financial health of a person or a business. Here we discuss the topic How to calculate the Net Worth of a Person? Before going to the main topic we have to write about the world top business magnates and business organizations CEO personal net worth during the current fiscal year 2017. According to their Net worth Chief Executive Officer of Facebook Mark Zukerberg $69 billion, American Business magnate Bill Gates $90.1 billion, CEO Amazon Jeff Bezos $89.3 billion and American Business magnate Warren Buffett $74.4 billion.                 The Balance Sheet is the balance between our income and our expenditure. That shows us that how a business use his cash and what kind of major and small expenses they made with the use of cash and how much they still has to pay and they owns in terms of as...

                Accountancy is the art and science of  recording, measuring, processing and presenting the value able financial information about economic entities such as business and cooperation’s. Accountancy is further divided in to many different  sub fields. The three main accountancy fields are financial accounting, management accounting and cost accounting. Their definitions and main features are as follows: Financial Accounting Management Accounting Cost Accounting “Financial Accounting deals with reporting to the higher level of management and to external users. Normally financial statements produced with the GAAP standards. Financial statement has a historical cost”. Basic purpose is to give purpose information to the stakeholders. Follow Standards like GAAP, IAS and IFRS to present the accounting data in a meaningful inf...

Africa the continent of resources , land of 54 countries and populated with 1.2 billion people. The economic researchers and the logistics and supply chain specialist observed that the continent countries are thinking for change. That’s the reason the new trade agreements, trade routes, infrastructures and communication means resources has been developed in the recent past. That is a positive change in them and welcomed by the civilized and modern world.                 The Internet connectivity, telecommunication services are faster than past time now here. People of the countries are enjoying the 4 th generation internet facilities with the beautiful smartphones in their hands. That’s all  is a very positive change and people of the countries enjoying it. Now the Africa is going to be really change its people and nations through the modern infrastructure and Information Technology Communication m...

           Trading online in consumer goods and product and delivering the products with the helpful logistics reliable communication means are very common these days.  Internet and technology create that opportunity for the investors, financers and financiers to invest their capital in online logistics trading businesses and that is very successful and economical for their business. Today the online purchasing is so common from all over the world. That’s all possible due to the advance communication means specially the use of Information Technology advance features, which are comping with new innovative ideas in the market. That Innovative ideas in the technology boost up the Supply Chain Market. Now the investors of the Supply Chain Management sector or advance Logistics chains use these IT based resources to manage their business effectively and efficiently. The advance logistics management capabilities which are now based on modern inno...

There are many points which helps the readers to manage their personal or Small business finance. These linchpin that helpful to manage the finance are as follow: Bank Transactions:                 Always prefer to do all the transactions with the bank accounts. That’s helps the business and the entrepreneurs to manage their business sales and expenses payment transactions and reduce the work burden over the business accountants. Accounting Records:                 Recording of accounting and financial transactions is the key essential point for the business because without maintaining  the of the accounting  records the business cannot maintain its cash flows and cannot survive in the market. Because in that case business always feels the low level of cash or liquidity availability. That is a very insulting p...

Investment in a new business needs the proper valuation. The Valuation helps us to make a realistic decision about the financial worth of the business. But the valuation need some techniques and analysis to get the actual worth of the running business. Everyone  who wants or planning to buy a running business he needs to follow the 5W’s strategy and business financial statement analysis techniques to make the realistic decision.  Here is the complete concept about the business actual worth or its financial valuation analysis. 5W’s Strategy:                 5W’s Strategy helps the buyer to make a realistic decision. In actual the 5W’s are the What, Where, When, Why and Who questions. These questions can be asked to the seller and can ask to the buyer himself to access their actual objective and goals for this buying and selling. These questions can be asked as follows: 1:  ...

                Finance is very linchpin for every business. Because without finance the business cannot run its daily operations and strategic projects. There is a big impact of finance over your personal life and business. That means that without finance progress in life and professional career is impossible. There are some steps which helps an individual and a business professional  to make the positive and developing progress in their life. Benefits of Separate Bank Accounts:                 Always keep hold the separate bank accounts for the important or every head of accounts that’s helps you to make the business transactions and manage them. When a business or individual use a single bank account for its operations  that’s always keep him in stress and difficulties to make the balance of cash flows. But the ...

Financial or Capital Budget:                 Financial or Capital Budget is the estimates of the total capital disbursement and collection in a projected period of time. The Financial or Capital Budget is also prepared by the business professionals and presented to the directors and approved by the directors. That Capital budget have the details of all the concerned major expenditures and the company planning’s for the possession and management of the fixed and current assets. Financial Performance:                 Financial performance can be projected or estimates through the capital budgeting. Financial ratios help the management to rank the project according to the projected cash disbursement and cash collections. The ratios helps to find the correlations and effects of the cash allocation to each section of the capital bu...