Budget Concept, Manual, Fixed, and Flexible Budgets
Budgeting is a continuous process involving the management of revenues and expenses to ensure financial responsibility and fiscal stability. Budget Concept A budget is a financial plan that outlines anticipated income and expenditures over a specified future period, such as a month or a year. It serves as a fundamental tool for financial planning and…
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RBI Increases ATM Withdrawal Fees, Effective May 1
The Reserve Bank of India (RBI) has announced an increase in interchange fees on ATM transactions, resulting in higher costs for cash withdrawals starting May 1, as reported by Doordarshan News. This revision is expected to impact frequent ATM users by increasing withdrawal expenses. According to reports, customers will incur an additional charge of Rs…
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Revised Priority Sector Lending Guidelines: Expansion of Loan Limits and Coverage
The Reserve Bank of India (RBI) has issued revised guidelines on Priority Sector Lending (PSL) following a comprehensive review of existing provisions and stakeholder feedback. These updated norms introduce several significant changes, including an increase in loan limits for housing and renewable energy projects, as well as modifications to the classification criteria for priority sector…
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Difference Between Marginal Costing and Absorption Costing in Income Measurement
The primary distinction between marginal costing and absorption costing lies in their treatment of fixed production costs. Marginal costing considers fixed production costs as period costs, expensing them in the period incurred. In contrast, absorption costing treats fixed production costs as product costs, allocating them to the units produced. Additionally, absorption costing emphasizes overhead recovery,…
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Absorption Costing: A System for Profit Reporting and Stock Valuation
Absorption costing, also known as full costing, is an accounting method used for inventory valuation. It incorporates all manufacturing costs, including direct materials, direct labor, and both variable and fixed manufacturing overhead, into the cost of a product. This approach is crucial for inventory valuation and profit reporting. Key Features of Absorption Costing Comprehensive Cost…
Revised MSME Classification Criteria Effective from April 1, 2025
The Government of India has revised the classification criteria for Micro, Small, and Medium Enterprises (MSMEs), effective from April 1, 2025. This update was announced by Finance Minister Nirmala Sitharaman during the Union Budget 2025–26 presentation. The revision aims to facilitate business expansion, encourage the adoption of advanced technologies, and enhance access to financial resources…
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