PRINCIPLES OF ACCOUNTING
Allocation and Apportionment of expenses- Allocation and apportionment of expenses are accounting methods used to distribute costs to different departments, projects, or products within an organization. Here’s a breakdown of…
Objectives of Departmental Accounting- The objectives of Departmental Accounting are: Performance Evaluation: To evaluate the performance of each department separately, by tracking revenues, expenses, and profits. Cost Control: To identify…
Meaning and Definition of Departmental Accounting- Departmental Accounting refers to an accounting system where the financial activities of each department within a larger organization are tracked separately. This system allows…
Departmental Accounting- Departmental accounting is a method used by businesses to track financial performance across different departments or segments within the organization. This approach allows companies to allocate revenues and…
LIFO- LIFO stands for "Last In, First Out," which is an inventory management and accounting method used to determine the value of inventory and the cost of goods sold (COGS).…
FIFO- FIFO (First In, First Out) is an inventory management and accounting principle. It is widely used in various industries, including manufacturing, retail, and food production. Here's a breakdown of…
Inventory Costing Methods- Inventory costing methods are techniques used to assign costs to inventory items and ultimately determine the cost of goods sold (COGS). The most common inventory costing methods…
Purpose of Inventory Valuation- Inventory valuation is a crucial accounting process that involves determining the value of a company’s inventory at a given point in time. The purpose of inventory…
Nature Inventory valuation- Nature inventory valuation refers to the process of assessing the economic value of natural resources and ecosystems. This valuation is essential for decision-making in environmental management, conservation,…
Need Inventory valuation- Inventory valuation is the method used to assign a monetary value to the inventory a company holds. This is crucial for financial reporting and assessing the company’s…