Basic Accounting Lecture Notes | Online Cost and Financial Accounting Tutorials

Types Of Capacity

What is Capacity?

A capacity is that amount of plant and machinary and personell with which a manger plans to conduct a business.

What is Volume?

Volume which is variable factor in business, is another name of Activity.

What are types/levels Of Capacity.

There are four levels of capacity, namely (1) theoratical, (2) practical, (3) expected actual and (4) normal.

What are stock Levels?
Every business has to maintain stocks of material (goods) which are used during the production process. Following stock levels are self-explained. Like reorder level suggests that at what level we should re order the stock. Similarly maximum or minim stock levels suggest the maximum or minimum stocks to be maintained.

Solving questions on this topic is quite easy if you know the formulas. You will have to remember all these formulas. Continue reading “Stock Levels” →

Profit Volume Chart

Important: Video Lecture on how to Draw Profit Volume Chart Click Here

A typical PV chart is given below. Video Lecture on this topic is under progress, and shall be published in October 2009. (IA).You can download this Tutorial by right clicking on the picture and save target as Continue reading “Profit Volume Chart” →

Relevant Costing

Relevant Costing topic is linked with Decision Making. Some times relevant costing topics is tested separately, and sometimes relevant costing’s principal might be tested in a question of decision making. Continue reading “Relevant Costing” →

General Ledger & Factory Ledger

The topics of Basic Entries and General & Factory Ledger are inter-related. It is assumed that you have learned how to pass Basic Entries. If you haven’t then Click Here and Learn them Continue reading “General Ledger & Factory Ledger” →

Marginal Costing

This is an important but easy topic. This is easy because the only thing which you will have to take care about is the format of the P&L Account/ Income Statment, which is pretty consistent and is given below.

What is the difference between Marginal and Absorption Costing?
The difference between these two is that in marginal costing, Fixed FOH is not made the part of the cost of production (hence fixed cost does not become the part of Stock also. This point is clearly express below in the tutorial), where as in Absorption costing Fixed FOH is the included in the cost of production.

You can download this Tutorial by right clicking on the picture and save target as

Continue reading “Marginal Costing” →

General Ledger Factory Ledger Part 2

This is part 2 of the topic “General and Factory Ledger”. To see part1 click here.

You can download this Tutorial by right clicking on the picture and save target as Continue reading “General Ledger Factory Ledger Part 2” →

Functional Budgets Part 2

This is the second part of the topic. To see First part, click here.You can download this Tutorial by right clicking on the picture and save target as Continue reading “Functional Budgets Part 2” →

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