Definition: Process Costing is defined as a branch of operation costing, that determines the cost of a product at each stage, i.e. process of production. It is an accounting method which is adopted by the factories or industries where the standardized identical product is produced, as well as it passes through multiple processes for being transformed into the final … [Read more...] about Process Costing
Budget
Definition: In the general sense, the budget is described as a precise statement, representing a financial estimate of income and expenditure of the government for a certain period. In cost accounting, budget means a quantitative statement, prepared before a particular period to serve as an estimate of future receipts and disbursements. The integrated process of preparing, … [Read more...] about Budget
Departmentalization
Definition: Departmentalization or Departmentation is a process wherein jobs/teams are combined together into functional units called as departments on the basis of their area of specialization, to achieve the goals of the organisation. So, in this way, the entire organization is divided into parts, i.e. departments which comprise of a group of employees, who carry out … [Read more...] about Departmentalization
Amalgamation
Definition: Amalgamation, as the name itself suggest, is a form of external reconstruction, in which there is a combination of two or more than two companies, either by merger or by takeover. It indicates two activities: Two or more entities fuse to form a new company, wherein the individual identity of the two entities vanishes and the company so formed comes into being. … [Read more...] about Amalgamation
Bill of Exchange
Definition: Bill of Exchange, can be understood as a written negotiable instrument, that carries an unconditional order to pay a specified sum of money to a designated person or the holder of the instrument, as directed in the instrument by the maker. The bill of exchange is either payable on demand, or after a specified term. In a business transaction, when the goods are … [Read more...] about Bill of Exchange
Golden Rules of Accounting
Definition: In Double entry system, due to its dual aspect, every transaction affects two accounts, one of which is debited and other is credited. To record the transactions in the journal, in a sequential way, certain rules are required, and these rules are called as Golden Rules of Accounting. Types of Account To understand the golden rules of accounting, one should know … [Read more...] about Golden Rules of Accounting
Marketing Mix
Definition: Marketing Mix is a group of marketing variables that the firm combines and controls, to produce the desired response in the target market. It is an important marketing tool that comprises of all the elements which influence the demand for the products offered by the firm. Components of Marketing Mix The different marketing activities are categorised by … [Read more...] about Marketing Mix
Intellectual Property
Definition: Intellectual Property, as the name suggests, is an intangible property, which is a product of human intellect, capital, labour, etc. such as artistic creations, literary works, inventions and so forth. It is intangible because it cannot be identified with the help of its physical characteristics. To safeguard the interest of the creators, intellectual property … [Read more...] about Intellectual Property
Portfolio Management
Definition: Portfolio Management, implies tactfully managing an investment portfolio, by selecting the best investment mix in the right proportion and continuously shifting them in the portfolio, to increase the return on investment and maximize the wealth of the investor. Here, portfolio refers to a range of financial products, i.e. stocks, bonds, mutual funds, and so forth, … [Read more...] about Portfolio Management
Tax Evasion
Definition: Tax evasion can be understood as a tax practice, wherein the assessee, i.e. an individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), firm or body corporate, etc. intentionally attempts to avoid or reduce the payment of taxes, by using unauthorized methods or downright frauds. Both illegal non-payment or underpayment of … [Read more...] about Tax Evasion