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      Definition, Significance, and Applications of Standard Costing
      Accounting, Financial AnalysisBy Surendra NaikMarch 20, 2025

      Definition of Standard Costing Standard costing is an accounting methodology used to estimate the expenses associated with a production process, as manufacturers cannot predict actual costs in advance. This approach enables manufacturers to plan for future expenditures related to direct materials, direct labor, and overhead, facilitating effective cost management. The Chartered Institute of Management Accountants…

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      Meaning of Accounting Ratios and Their Purposes
      Accounting, Financial AnalysisBy Surendra NaikJanuary 8, 2025

      Accounting ratios are metrics used to compare two or more financial data points from a company’s financial statements to measure its profitability, efficiency, and overall financial health. These ratios are typically expressed in various forms, such as proportions, fractions, percentages, or terms of the number of times one value relates to another. Equation for Ratios:…

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      The difference between Reserves and Provisions explained
      Accounting, Financial AnalysisBy Surendra NaikJanuary 7, 2025

      Both reserves and provisions refer to the amount retained by an organization to deal with all possible contingencies in the future. In accounting parlance, reserves are appropriations out of profits and provisions are charges against profits. Although the IFRS Standards sometimes call provisions a ‘reserve’, they are not the same thing – a provision is…

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      What are various methods of depreciation, advantages, disadvantages and revaluation of assets?
      Accounting, Financial AnalysisBy Surendra NaikNovember 19, 20242 Comments

      (This article explains various methods of Depreciation such as the Straight Line Method, Diminishing Balance or Written Down Value (WDV), Unit of production method, MACRS method, group depreciation method, etc. Advantages and Disadvantages of Straight Line Method, Advantages and Disadvantages of Written Down Value Method, Units of Production Method, Sum of the Years’ Digits Method,…

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