Accounting-Finance

Learning Materials For Accounting, Management , Finance And Economics.

Saturday, November 25, 2017

Difference Between Cost Accounting And Management Accounting

Major differences between cost accounting and management accounting are as follows:

1. Meaning

Cost Accounting: Process of collecting, tracking, analyzing and ascertaining the cost of the product. It provides cost data regarding the product.
Management Accounting: It Provides financial and non financial data or information to the top level management.

2. Information

Cost Accounting: It provides quantitative (which can be measured in monetary term) information about the product or services.
Management Accounting: It deals with both quantitative and qualitative (cannot be measured in monetary term) information and data.

3. Objective

Cost Accounting: To track the cost data and to help the management in cost control and cost reduction process.

Management Accounting: It helps the management in future planning, policy making, coordinating and controlling by providing financial and non-financial information.

4. Scope

Cost Accounting: It only deals with the cost data. So, its scope is not wide.
Management Accounting: It has a wider scope than cost accounting. It deals with financial and non-financial data. It also deals with financial accounting, economics and mathematics also.

5. Nature

Cost Accounting: It deals with past and present cost data.
Management Accounting: It focuses on present data as well as future plan and projection.

6. Interdependancy

Cost Accounting: It can be practiced without the help of management accounting.
Management Accounting: In the absence of cost accounting management accounting cannot be practical.

7. Procedure

Cost Accounting: It follows specific rules, technique and procedure.
Management Accounting: It does not follow any specific rules and procedure.

8. Planning

Cost Accounting: It focuses on short term planning.
Management Accounting: It stresses on both short term planning and long term planning.
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Friday, November 24, 2017

Objectives Of Cost Accounting

Main objectives of cost accounting can be described as follows:

1. Ascertainment Of Cost

This is the key objective of cost accounting to track and analyze the per unit cost of the product produced by the company. It helps to ascertain cost of each activity such as process, operation, job etc.

2. Fix Selling Price

Cost accounting provides base for determination of selling price of company's product by ascertaining the cost of each product. It helps the management to fix the selling price of products and services.

3. Cost Control

Cost accounting helps the organization to control the cost of production by taking necessary steps to reduce wastage of materials, time and expense while carrying out the operation.

4. Assisting In Decision Making

Cost accounting helps management in decision making such as make or buy decision, drop or continue decision, future expansion policies etc. It helps to make a choice out of two or more courses of action. 

5. Ascertainment Of Profit

Cost accounting helps in tracking and ascertaining profitability of the product by preparing profit and loss account and balance sheet periodically.

6. Formulating Policies

Cost accounting plays important role to formulate policies of the organization. It provides necessary information and data to the top level management which are essential for framing marketing policies of the company.

7. Basis Of Financial Statement

Cost accounting is the foundation for the preparation of different financial statements (profit and loss account, balance sheet, trial balance etc.) of the company.
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Saturday, July 4, 2015

Problems Faced By Women Entrepreneurs

Business ,
Women entrepreneurs have to face the following Problems:

1. Lack Of Adequate Capital

Generally, women entrepreneurs use their savings and personal property to start a new venture. Due to their poor access to external financial resources, they face the problem in raising capital.

2. Poor Business Relations

In male-dominated groups, it is very hard for the women entrepreneurs to to develop business relations. Therefore, they find limited business opportunities. 

3. Lack Of Skill

Generally, women possess administrative skills and lack manufacturing and technical skills. Therefore, their skills and experience limits them to service-related ventures only.

4. Family Pressure

Women entrepreneurs suffer from family pressure. They have to devote their time for household works and for children. This limits them to use time for new venture.


5. Low Mobility

Women tend to be less mobile than men by nature. Due to low mobility, they may lose various business opportunities.

6. Other Difficulties

Women entrepreneurs have to face various other problems such as legal constraints, lack of infrastructure, shortage of raw materials, stiff competition. etc.
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Sunday, June 7, 2015

Functions Of Women Entrepreneurs

Business ,
Following Functions Are Performed By Women Entrepreneurs

 1. Creating New Venture

Women entrepreneurs identify the opportunities, evaluate them and select the best opportunity. They convert the opportunity into new venture. Women entrepreneurs are imaginative in nature and they can develop ideas about the new venture.

2. Risk Bearing

Every business includes some portion of risk. But women entrepreneurs have risk taking capacity. They calculate different types of risks such as financial risk, social risk, psychological risk etc. They handle risks by gathering information.

3. Innovation

This is another major function of women entrepreneurs. They convert their ideas into innovations to meet market demands by the help of research and development facilities. 

4. Management

Women entrepreneurs believe in hard work. They directly engage in the management. They take part in planning, coordinating and controlling. They motivate and provide leadership to the employees.
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Tuesday, March 24, 2015

Difference Between Entrepreneur And Intrapreneur

Business ,
The differences between entrepreneur and intrapreneur are as follows:

1. Dependency

Entrepreneur: He is fully independent. He does not work for others and his own boss. 
Intrapreneur: He depends on corporate owner. He works for corporation under defined rules and regulations.

2. Capital/ Investment

Entrepreneur: He manages required capital himself. He raises fund for new business.
Intrapreneur: He does not need to manage required fund because corporation raises capital for the business.

3. Risk Bearing

Entrepreneur: He bears 100%  business risk. He risks own money.
Intrapreneur: He does not bear full risk of the business, He risks others money.

4. Primary Motive

Entrepreneur: Primary motive of entrepreneur is to be independent, self-satisfaction and earn monetary reward.
Intrapreneur: He has the motive of advancement and promotion with fixed salary.

5. Time Bound

Entrepreneur: He does not follow strict timetable. It may take several years for the growth of the business.
Intrapreneur: He is bounded by the corporate timetable.

6. Mind-set

Entrepreneur: He is guided by the principle of ' Problems provide opportunities'.
Intrapreneur: He thinks that the problems are threats for him and his corporation
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Sunday, August 3, 2014

E-commerce Features

Business ,
 The main features of e-commerce can be pointed out as follows:

1. Individual Communication

Communication is individualized and interaction is with carefully selected individual customer. E-name is used for this purpose.

2. Data Depository 

Internet is a central depository of huge amounts of data. It can be accessed all over the world through search engines. Websites contain information and they can be downloaded as needed.

3. E-mail and Electronic Platforms

E-mail and computer faxing is used for speedy transfer of messages to conduct business. Electronic platforms can be :

- EDI : Electronic data interchange for placing orders to suppliers. It is business to business exchange of data.

- ATM : Automatic teller machine to facilitate receiving digital cash. Smart cards are used to make payments.

- Computers : They receive orders from customers.

4. On-line Selling

E-commerce uses on-line selling. It has revolutionized selling through E-tailing, specially for:
- Airlines tickets and hotel bookings.
- Shares and financial services
- Cars and other vehicles 
- Computer hardware and software
- Books and music
- Consumer electronics
- Fashion goods

5. Relationship Marketing

E-commerce builds long-term mutually satisfying relations. This leads to life time loyal customers. The relations are based on superior customer value and satisfaction. Long term profits are made by lifetime customer loyalty.
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Saturday, July 5, 2014

Functions Of An Entrepreneur

Entrepreneurial qualities consist of vision, inspiration, creativity, risk taking and achievement orientation. An entrepreneur is a visionary individual who takes risks by starting a new venture through assembling and coordinating various resources for the sake of uncertain rewards.
Entrepreneurs perform several functions to carry out their activities. The important functions of an entrepreneur are as follows:

1. Planning

Planning is predetermining future which sets target to convert new idea into reality. By planning, entrepreneurs carry out the following functions:
Setting goals
Goals are set for new venture which can be in terms of growth, profit, leadership and services. Goals are set for long-term.

Developing business plan
Business plan is developed for the new venture which consists of action plans related to production, marketing and finance. Contingency plans are developed to cope with risks.

2. Organizing

Organizing establishes a structure for the new venture. Through organizing, entrepreneurs carry out the following functions:

Grouping of tasks
Tasks required to achieve goals are defined and they are grouped into positions. Authority and responsibility of each position is established.

Coordination
Coordination is the key to entrepreneurial success. So, mechanisms are established to achieve harmony of efforts.

3. Mobilizing resources

Entrepreneurs determine the required resources and mobilize them. Resources can be:

Financial resources
Financial resources can be existing resources of the entrepreneurs or can be mobilized from friends, relatives, banks or other sources.

Human resources
Entrepreneurs acquire the needed human resources to fill-up the positions provided in the organization structure.

Technology resources
Entrepreneurs deal with new technologies. They establish production facilities and procure machinery and equipment. They upgrade technology to keep up with technological changes.

4. Relationship Management

Entrepreneurs manage a variety of relationship which are as follows:

Exchange relationship
They are related with procurement of inputs and marketing of outputs. These relationships are mainly concerned with suppliers and customers. Exchange relationships are business oriented.

Professional relationship
Entrepreneurs manage professional relationship within the venture. This is essential to motivate employees for higher productivity. They provide leadership and tackle labor problems. Such relationships are with employees, bankers, insurance companies, accountants, lawyers and consultants.

Government relationship
Entrepreneurs manage relationship with government and regulatory agencies to get licences, facilities, financing and tax concessions. Dealing with public bureaucracy is an important function of entrepreneurs.

Social relationship
Membership in clubs, professional associations and relation with local community are used to manage social relationship.

5. Control

Control is measurement and correction of performance to achieve the foals of the new venture which is based on feedback.  Control can be :
Financial control
Entrepreneurs ensure proper allocation and utilization of financial resources which is needed to control cost and minimize wastage. 

Production control
Entrepreneurs achieve proper combination of inputs for production. Quality control is ensured and efficiency is improved.

Managerial control
Entrepreneurs ensure management control in the new venture. They make key decisions themselves to solve problems.
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