Why is it important to distinguish between needs and wants in budgeting?

Budgeting is the systematic process of preparing detailed short term plan of actions expressed in monetary values. The plan quantified in monetary terms prepared ahead of a defined period should show expected income and expected expenditure. A budget should also fulfill a planning purpose and a control purpose (underlined by the comparison of actual result

Marginal Costing And Absorption Costing (Examples)

The basis of all financial accounting statements is absorption costing or total absorption costing , using absorption costing, operating statements don’t distinguish between fixed and variable costs, all costs are absorbed into production. Marginal costing on the other hand, distinguishes between fixed and variable costs. The marginal cost of a product is its variable cost.

The customer has always driven the business model…”– Amancio Ortega.

If you’re in business, then profit making is your priority. Do you have a business plan to make a profit? You do. That means you have a business model; you have identified which products or services give your comparative advantage and where your customers are in the target market. Don’t forget that expenses are an

Don’t just do something because it’s a trendy idea… – Jerry Greenfield.

Don’t just do something because it’s a trendy idea and will make you a lot of money. The reason I say that is because any kind of venture involves going through difficult times. If you’re doing something you are passionate about and really believe in, then that will carry you through. – Jerry Greenfield.

Keep your best wishes, close to your heart and watch what happens – Tony DeLiso.

What happens? the closer you keep your best wishes to your heart,the more difficult for things not wished for to penetrate your life, Why is it so? because with your heart, you produce thoughtsand with your thoughts you create all you focus on, it doesn’t matter what your focuse is,it may be your best wishes

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.

Indomitable perseverance in a business, …ensures ultimate success. – Cyrus McCormick.

Indomitable perseverance in a business, properly understood, always ensures ultimate success. – Cyrus McCormick.

11 John Neff Good Investment Quotes.

I’ve never bought a stock unless, in my view, it was on sale. – John Neff

47 Financial Terms Beginner Investors Should Know.

Are you a new investor? Then you’re not expected to make investment decisions like professionals. Lack of confidence boosting knowledge of financial terms is going to get in the way of making informed investment decisions. It’s important to overcome this ‘handicap’ by learning meanings and applications of key financial terms. 47 Financial terms and their

How Small Businesses Can Keep Accurate Accounting Records (6 Rules).

Many small businesses keep financial records which are incomplete. Incomplete financial records enter a transaction as a single entry.