Every decision that an organisation makes will have some impact on costing issues and eventually the bottom line. To make smart decisions it is vital to understand the relationship between fixed and variable costs and then be able to apply these concepts correctly to either Absorption or Marginal Costing techniques. Fixed Cost – a cost [...]
ISA Nightmare
I’ve just had a run in with one UK ISA supplier – however most of them are pretty poor on communication – the initial dispute was on interest rates – they said I’d signed up for 3.75% 3 year deal and I had to argue strongly that the rate agreed in their office was 4.25% [...]
Management Accounting compared with Financial Accounting
MANAGEMENT ACCOUNTING (CIMA) vs. FINANCIAL ACCOUNTING (CA) It is important that management accounting is clearly distinguished from financial accounting. The first piece of great news is that management accounts are not audited and not even required by law – that means you can ‘DIY’ if you want to and there are no large accounting bills [...]
The current banking crisis explained (humour)
Young Stelios bought a donkey from a farmer for €100. The farmer agreed to deliver the donkey the next day. The next day he drove up and said, ‘Sorry son, but I have some bad news. The donkey’s died.’ Stelios replied, ‘Well then just give me my money back.’ The farmer said, ‘Can’t do that. [...]
Costing Techniques – Pricing for Profit
Every decision that a organisation makes will have some impact on costing issues and eventually the bottom line. To make smart decisions it is vital to understand the relationship between fixed and variable costs and then be able to apply these concepts correctly to either Absorption or Marginal Costing techniques. Any decision to introduce or [...]
