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
Rightsizing
Definition: Rightsizing is a strategic business tool that escalates the resources to reduce costs and remain competitive. It is a type of involuntary separation that filters the workforce in an optimum way. It is especially performed at the top level of management. Optimization gives rise to a skilled, abled and knowledgeable workforce. Thus, organizations can achieve new … [Read more...] about Rightsizing
Compensation Management
Definition: Compensation management deals with every type of reward and its allocation in the most desirable way. It is an essential tool for managers in Human Resource Management. This is because it helps achieve equity, transparency and consistency across the organization. Compensation is the reward an employee receives for their valuable efforts while performing various … [Read more...] about Compensation Management
Direct Marketing
Definition: Direct Marketing is a personalized form of marketing that establishes direct interaction with the potential customer. Here, the marketers target the correct type of audience for promoting their products. Its goal is to get a response from the target customer. However, it does not necessarily involve physical interaction with the customer. Besides, companies may … [Read more...] about Direct Marketing
Market Segmentation
Definition: Market Segmentation implies a process of fragmenting the diversified market containing similar attributes or needs. It is the first stage of the STP decision process (Segmentation, Targeting and Positioning). It is a tool to achieve stability and fight competition in a highly competitive market in the long run. Classification of market segments depends on certain … [Read more...] about Market Segmentation
Circular Flow Model
Definition: The Circular Flow model represents the continuous flow of money among various sectors of the economy. The money flow results in economic activities such as production, consumption, investment and expenditure. It plays a significant role while calculating the country's national income. The major sectors of the economy are: Domestic or Household Corporate … [Read more...] about Circular Flow Model
Management Report
Definition: The management report is a means of communicating essential information from high to low levels of management. It consists of facts and significant data presented through written, oral and visual tools (Graphs, Charts and Pie-Charts). It provides an insight into the departmental progress through financial and non-financial data of a specified period. Timely … [Read more...] about Management Report
Financial Statement Analysis
Definition: Financial Statement Analysis is the assessment of the firm's financial well-being. It determines relations among various items of the financial statements. Also, it helps in identifying strengths and specifying the areas of concern persisting in the firm. It aims to scrutinize, interpret, compare and depict useful relationships among financial statements (Balance … [Read more...] about Financial Statement Analysis