Definition: Computerized accounting refers to carrying out accounting functions or processes using computers. It involves recording and analyzing financial transactions electronically over accounting software. The accounting software serves as a framework for data recording and processing. Companies may use readymade accounting software available in the market or get a … [Read more...] about Computerized Accounting
Consumer Equilibrium
Definition: Consumer equilibrium is when the customer attains maximum satisfaction from his present consumption pattern with given income and prevailing market prices. Here, the customer is not likely to change his expenditure and units consumed. This is because, he derives the highest utility from the commodities purchased with the given income. First, lets us … [Read more...] about Consumer Equilibrium
Employee Separation
Definition: Employee Separation is the discontinuation of his employment contract with the company. The termination of employees services can be either Voluntary or Involuntary. This can take the form of Retirement, Resignation, Discharge, Layoff, etc. The companies and employees must specify valid reasons behind their separation. The process may be upsetting for both, … [Read more...] about Employee Separation
Responsibility Accounting
Definition: Responsibility accounting is an accounting system that controls cost and revenue, by delegating responsibility to individuals or groups and apportionment of responsibility centres. It aims to achieve minimum variance between actual and planned goals. Responsibility Accounting focuses on monitoring and controlling costs through personal responsibility within the … [Read more...] about Responsibility Accounting
Product Decision
Definition: Product Decision in marketing refers to the company’s mindful decisions, major or minor regarding their product. It ranks first among the 4Ps of Marketing- Product, Price, Place and Promotion. Organizations take these decisions to attain their objectives and become profitable in the long run. Product Decisions are vital marketing decisions to be made at various … [Read more...] about Product Decision
Span of Control in Management
Definition: The span of control in management suggests estimating the optimum number of subordinates managed by a single supervisor. It is a primary factor that determines the shape of the organization. Also, it involves all the management activities than just supervision and control. The levels of management are created based on the span of control expressed by comparing … [Read more...] about Span of Control in Management
Employee Ownership
Definition: Employee ownership is a model in which the employees own all or maximum stake in the business. It isn't restricted to the higher level but also offered to every management level. Moreover, it provides tax benefits to businesses. This model benefits both the business as well as employees. Employees shares companies' profits, which boosts enthusiasm. Consequently, … [Read more...] about Employee Ownership
Integrated Accounts
Definition: Integrated Accounts are statements in which financial and cost accounting transactions are maintained jointly. In other words, when the cost and financial accounts are merged and recorded in the same set of books, it is referred to as Integrated Accounts. It accommodates complete information about both areas. However, the transactions are recorded based on the … [Read more...] about Integrated Accounts
Group Decision Making
Definition: Group Decision-making is a form of participative decision-making, where a group of individuals work together to solve a problem complex in nature. The group members try to discover and test creative alternatives to solve complicated problems. It is a participatory process in which the group members share their Ideas, Knowledge, Expertise and Experience. The group … [Read more...] about Group Decision Making
Batch Costing
Definition: Batch costing is an extension of Job costing which calculates costs and profit for batches. The production in batches decreases the setting up costs. Whereas, it increases the carrying and holding costs. Moreover, Economic Batch Quantity (EBQ) is considered during production. It is also known as 'Lot Costing'. Preparation of Batch cost sheet facilitates … [Read more...] about Batch Costing