Revision variance – meaning

Revision variance - meaning

Revision Variance is the amount by which a budget is revised but which is not incorporated in the standard cost rate as a matter of policy. The standard costs may be affected by wage rate changes after wage accords, fiscal policy etc. The standard costs are not disturbed to account for these uncontrollable factors and to avoid the amount of labor and cost involved in revision, the basic standard costs are allowed to stand. It is essential to isolate the variance arising out of non-revision in order to analyze the other variances correctly. read more

Duties of budget controller in the organization.

Duties of budget controller in the organization.

To line up the various functions of the Budget Committee, to bring them together and to co-ordinate their efforts in the matter of preparation of target figures, there should be a person usually designated as the Budget Controller, who can provide ready data relating to all the functions. He is more or less the secretary to the budget committee. The Budget Controller does not control; he is a staff man; he advises but does not issue instructions. read more

Meaning, objectives, and nature of ratio analysis.

Meaning, objectives, and nature of ratio analysis.

A ratio expresses the numerical relationship between two numbers. In the words of Kennedy and McMullen, “the relationship of one item to another expressed in simple mathematical form is known as a ratio”. Thus, the ratio is a measuring device to judge the growth, development and present condition of concern. It plays an important role in measuring the comparative significance of the income and position statement. Accounting ratios are expressed in the form of time, proportion, percentage, or per one rupee. Ratio analysis is not only a technique to point out the relationship between two figures but also points out the devices to measure the fundamental strengths or weaknesses of a concern. read more

Revision question on how to perform the bank reconciliation

Revision question on how to perform the bank reconciliation

The following is a summary from the cash book of BW Ltd for July 2015:

On investigation, it was discovered that:

i)   Bank charges of TZS 15 shown on the bank statement have not been entered into the cash book.

ii)  A cheque drawn for TZS 110 to pay a supplier has been entered in the cash book as a receipt. read more