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

Revision question on IAS 10 – events after reporting period.

Revision question on IAS 10 - events after reporting period

Suame Ltd is a listed telecommunication company that prepares its financial statements for the year ended 31 October 2015 in accordance with IFRS. The financial statements are due to be authorized for issue on 15 January 2016. read more

Fixed asset turnover ratio – meaning and formula

Fixed asset turnover ratio - meaning and formula

The fixed assets turnover ratio measures the efficiency with which the firm is utilizing its investment in fixed assets, such as land, building, plant and machinery, furniture, etc. It also indicates the adequacy of sales in relation to investment in fixed assets. The fixed assets turnover ratio is sales divided by the net fixed assets (i.e., the depreciated value of fixed assets). read more