In many processing industries, more than one product may be produced in a particular manufacturing process. They may be classified as joint products and
Costing
The Difference between Cost Centre and Profit Centre
When a business grows, its functions, organizational structure, and other related operations also grow in terms of volume and complexity. The management often delegates
The Difference between Cost Centre and Cost Unit
A product or service, a project, a department, or any activity to which a cost corresponds is referred to as a cost object. To
The Difference between cost control and cost reduction?
To improve profits, two things are necessary – either an increase in revenue or a decrease in costs. But in today’s competitive world, it
The Difference Between Explicit Cost and Implicit Cost?
In a business, when costs are analyzed from a payment point of view, these are segregated into two types – explicit and implicit costs.
What is a rolling budget? Pros and Cons of using it
Rolling budgets are becoming very popular among businesses. The concept of rolling budgeting is influenced by a movement named ‘beyond budgeting’ that believes that
What is incremental budgeting? Is it good for your business?
What is incremental budgeting? Every year, annual budget planning takes place in every business. It is commonly seen that as time passes, managers tend
Fixed and Flexible budget – A complete overview
Both fixed and flexible budgeting are ways to prepare a budget for your business or division. While one is rigid, the other is adjustable
What is a cash budget? – An insight into its Need
A cash budget plays an important role in ensuring the efficient working of a company. Every business must know whether it will have enough
Can performance budgeting help achieve a company’s goals?
Performance budgeting is a type of budgeting that allows you to measure performance at different levels of an organization. It is a process of