Differential analysis is a process used in accounting to evaluate two or more alternatives and determine which option will provide the greatest benefit or result. This analysis is often used by...
Category: Managerial Accounting
What is the Difference Between Absorption Costing and Variable Costing?
When it comes to accounting, there are many different methods that businesses can use to track their expenses and revenue. Two commonly used methods are absorption costing and variable costing. Both...
Operating leverage is a measure of how sensitive a company's operating income is to changes in revenue. In other words, it is a measure of how much a company's profits will change in response to...
How Do Manufacturing Costs Flow Through with Process Costing?
Process costing is a popular method used in the manufacturing industry to calculate the cost of producing a product. This method is used for companies that produce large quantities of similar items,...
In a manufacturing business, the cost flow process starts with the raw materials, which are the basic materials used to produce goods. The raw materials are usually stored in a warehouse until they...
A cash budget is a financial plan that outlines a business's expected cash inflows and outflows over a specific period, usually monthly or quarterly. It is a tool that businesses use to manage their...