What Is A Cost Centre?

A cost centre is a production or service item, activity, function or location of an equipment for which costs are accumulated.

10 Limitations Of Financial Statements.

Financial statements are usually prepared on the historical cost basis. What this means is that transactions are recorded at their original cost at the date of transaction.

What Are Sources And Applications Of Funds Statements?

The sources and applications of funds statement shows the manner operations of a business have been financed (sources) and how these financial resources have been utilized (applications).

Contingency Budget Example, Definition And Why It’s Necessary.

Contingency budgets should be important appendices to primary budget estimates, to help navigate a business through changes in a business climate and ease the shift from one level of activity to another

Why Is A Cash Budget Necessary?

It’s no use budgeting for purchases and consumption if during the budget period, you run out of cash. Cash budget is necessary so that any shortage of cash can be known in advance and early preparations can be made to ensure continuous cash flow. Some of the early preparations may be cutting back on spendingContinue reading “Why Is A Cash Budget Necessary?”

What Is Capital Rationing And What Are The Capital Rationing Methods?

Human wants are unlimited but resources are limited. A business with many viable projects as investment opportunities at a particular time will always have a problem of limited funds. So, what should a business with a fixed amount of funds for investment within an accounting period do, when it has many acceptable projects begging forContinue reading “What Is Capital Rationing And What Are The Capital Rationing Methods?”

Investment: How To Calculate The Value Of Convertible Bond.

Investors often face a situation where they have to analyze long term investment opportunities to arrive at the most profitable decision. An opportunity may come when a company goes the route of convertible security to seek long term funds. An investor must determine the value of the convertible security before a choice is made toContinue reading “Investment: How To Calculate The Value Of Convertible Bond.”