Definition: Sunk cost is the cost that has already been incurred in the past and is unrecoverable. Thus it is also known as historical cost. It is the written down value of the plant after reducing the reclaim value of the plant. However, this cost is not relevant for making the decisions as it has already been incurred and cannot be refrained by taking decisions in … [Read more...] about Sunk Cost
Internal Control
Definition: Internal Control system is the arrangement of controls by the enterprise in the interest of the business of the organization in an organized and productive manner. It ensures obedience to management policies, protect assets and ensure the integrity and efficiency of the records as far as possible. The specific components or elements of an Internal control system … [Read more...] about Internal Control
Inventory Valuation
Definition: Inventory valuation or stock valuation is the method of identifying the actual value of the inventories at the end of the year. The foremost step of valuation is to ascertain the physical inventories of the company, i.e., raw material, work in progress goods, and finished goods. The main objective behind the valuation of inventory is to determine the true income … [Read more...] about Inventory Valuation
National Income
Definition: National Income or (NNPfc) is a sum of factor income earned by the nation in the form of monetary value from the economic activities such as income from the production of final goods or providing services in a financial year. The level of national income can determine the level of aggregate demand for goods and services. In the above definition, economic … [Read more...] about National Income
Social Marketing
Definition: The word “Social Marketing” was introduced in 1971 to specify the increasing use of marketing tools and techniques to advertise social belief, objectives and actions. It has developed into a social reform management technology associating outline, application and management of programs designed for raising the prominence of social idea, purpose or application amidst … [Read more...] about Social Marketing
HR Audit
Definition: HR Audit or Human Resource Audit is a process of examining the efficiency of the human resource divisions of the company to help them in assessing their current position. It is very much similar to the financial audit procedure. To understand its HR policies, the company does the human resource audit so that a clear picture of its practices comes out, which helps … [Read more...] about HR Audit
Valuation of Assets
Definition: Valuation of Assets or asset valuation is a process of determining the present market value of the assets of the business as shown in the balance sheet of the company based on universally accepted accounting principles. It’s a duty of an auditor to make an appropriate asset valuation along with the verification of such assets, and such valuation is done based on its … [Read more...] about Valuation of Assets
Trial Balance
Definition: Trial Balance is a statement that assembles the balances of all ledger accounts in a definite format. It records both debit balance as well as credit balances from the ledger accounts, including cash and bank balances on a stated date. It is inclined with the purpose of testing the analytical or arithmetical accuracy of the books of accounts of a business. Content: … [Read more...] about Trial Balance
Planning
Definition: Planning is a process of developing strategies for accomplishing the pre-determined goals of the company. It is an essential aspect of any business as planning a future adds value to the business. Planning focuses on both an individual or a group target. Efficient planning flourishes the business and encourages the personnel to work effectively on targeted … [Read more...] about Planning
Business Plan
Definition: Business Plan is an outline of a business project in a written form, i.e., a summarized structure of a scheduled business which includes all the details of business relating to finance, marketing, etc. For running a smoother business, there is no alternative other than making an efficient business plan. However, in various sectors, it can be called with distinctive … [Read more...] about Business Plan