Skip to main content

Posts

CONTRIBUTION MARGIN CM

Contribution Margin or CM is used to analyse, how much contribution is earned, when variable costs are deducted from sales revenue of an entity. Contribution margin is used in decision making scenarios. Contribution margin can be calculated per unit or in revenue terms. It is calculated as follows: Per Unit:  CM Per Unit = Sales Price (Per Unit) - Variable Costs (Per Unit) Revenue Terms: CM = Sales - Direct Materials - Direct Labor - Variable Overheads Presentation of Contribution Margin is as follows: Sales                                         xx Less: Variable costs - Direct materials                     (xx) - Direct labor                            (xx) - Variable overheads                 (xx)                                                     - Total variable costs                 (xx)    Contribution margin                  xx CM Ratio: Contribution margin ratio is calculated as follws: CM Ratio(%age)  = CM / Sales * 100 Example 1: Sales P

TRADING ACCOUNT

What Is Trading Account Trading Account is prepared to calculate the Gross Profit of an entity for a particular time period. Time period may be 1 year, 3 months or 1 month. Trading Account shows following items: Sales / Revenues Sales Returns Cost of Sales and  Gross Profit Cost of Sales = Opening Stock (Inventories) + Purchases - Closing Stock (Inventories) Gross Profit = Sales - Cost of Sales Example: ·         ABC Company has following details ·         Inventory at 1 st September, 2017 = $100 ·         Purchases of stock during the year = $300 ·         Inventory at 31 ST August, 2018 = $150 ·         Sales for the year = $400 1)                  Calculate Cost of Sales and Gross Profit? 2)                Prepare Trading Account for the year 2018 Solution: 1)                  Cost of sales = $100 + $300 – $150                         = $250 Gross profit = $400 - $250 = $150 2)                    ABC Company Tradin

DEPRECIATION

Depreciation is the gradual charging to an expense of an asset's cost over its expected useful life.  It is an expense therefore charged in Income Statement of an entity

HOW TO PASS EXAMS - GUARANTEED GOOD RESULTS AND GRADES

Every year and in new session, students repeat the same studies mistakes, which they made earlier in last semester or exams.  WHAT ARE THOSE MISTAKES? Those mistakes are very common and mentioned below: Starting studies near exams Not planning the studies Not identifying the weak areas or subjects Not following the syllabus Focusing on the areas where they are already good at Too much involvement with friends on social media or other related matters WHAT HAPPENS DUE TO ABOVE MISTAKES? Students loose confidence  Start taking examination pressure Negative thinking about the results Failure or bad result WHAT STUDENTS SHOULD DO THEN? PLANNING .....yes There is a famous Quote about planning which is.. "Failing to plan is planning to fail" Students should first of all plan their studies well before the examination. Students are required to know the examination dates or months and accordingly start the studies. Planning requires the self assessm

What Is Chartered Accountancy CA and Who Should Join This Field

Chartered Accountancy CA, is an Accountancy, Auditing and Finance qualification. CA is considered as one of the most prestigious and rewarding qualifications in the world.  What Major Subjects Are Covered In Chartered Accountancy Chartered Accountancy qualification covers various major subjects, which students of CA have to pass to become a Chartered Accountant.  These subjects are mentioned below: Financial Accounting Basic and Advanced,  Business Communication, Economics,  Stats and Maths,  Financial Reporting,  IT,  Taxation,  Business Law,  Corporate Laws,  Business Management Auditing,  Financial Management,  Management Accounting,  Business Management etc. Core Subjects Of CA Qualification: The core subjects of CA qualification are as follows: Auditing,  Financial Reporting,  Taxation  Corporate Laws  Financial Management.  Training or Article Ship To become a qualified Chartered Accountant one has to undergo the training or article ship progra

How To Plan The Studies And Prepare For Exams

How To Plan The Studies And Prepare For Exams How much time do you need to prepare for your upcoming exams? The answer depends on your preparation level. Students who are regular in studies and give two hours each day from the beginning of the session, perform well in the exams than the students who start preparing for exams, one or two months before. It is a proven research that students who are regular in their studies are found more relaxed than those students, who try to prepare in a short period of time. The stress levels of both categories of students also differ significantly. Students who start preparing for exams in the end carry more stress and overburden themselves due to which they get panic and loose confidence level. Good Exams Preparation Strategy Breaking the sessions into manageable pieces and spreading it over several days, is a good exams preparation strategy and help students, to manage their studies more effectively. Below

Cambridge AS and A Levels

Cambridge International AS And A Levels Cambridge International AS and A Levels are equivalent to the AS and A Levels taken by learners in UK.  Cambridge International AS and A Levels are accepted for entrance to UK universities.   AS and A Level Curriculum: After passing Cambridge O Levels students joins Cambridge International AS and A Levels which help students to build understanding and skills in the following areas: Independent thinking   Application of knowledge Understanding of familiar as well as new situations Logical thinking Decision making,  Judgments and recommendations Presenting explanations  reasoning etc etc In depth subject content Concepts clarity  Subjects Offered Almost 55 subjects are offered from which choices can be made. Science, Commerce and other subjects are offered in Cambridge AS and A Level qualification.  Details of the subjects offered by Cambridge AS and A Level can be seen from the following link: For subject details