46
Business Administration / Re: Finance Terminologies
« on: March 08, 2017, 05:07:46 PM »
Thanks
News:
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47
Business Administration / Re: ছেলেমেয়ে মানুষ করার সহজ উপায়
« on: March 08, 2017, 05:07:04 PM »
সহজ উপায় ?
48
Business Administration / Re: Real Estate Industry and Bangladesh
« on: March 08, 2017, 05:03:14 PM »
Thanks for Sharing.
49
Business Administration / Re: Mobile Payment Gateway:
« on: March 08, 2017, 05:02:39 PM »
Informative .......
50
Business Administration / Re: How Real Estate Industry has been Affected by land Problem In Bangladesh???
« on: March 08, 2017, 05:01:50 PM »
Thanks for Sharing.
51
Business Administration / Re: Call money rate declines to 3.5%
« on: March 08, 2017, 05:01:08 PM »
yes
52
Business Administration / Re: মোবাইল ব্যাংকিং আরো নিয়ন্ত্রণ আরোপ করল কেন্দ্রীয় ব্যাংক
« on: March 08, 2017, 02:10:28 PM »
Thanks
53
Business Administration / Re: হাসতে থাকো মন ভাল হয়ে যাবে
« on: March 07, 2017, 03:25:17 PM »
good idea
55
MBA Discussion Forum / Opportunity and Incremental Costs
« on: March 07, 2017, 01:35:15 PM »
The opportunity cost is the value of a benefit sacrificed in favour of an alternative course of action. It is the maximum amount that could be obtained at any given point of time if a resource was sold or put to the most valuable alternative use that would be practicable. The opportunity cost of a good or service is measured in terms of revenue which could have been earned by employing that good or service in some other alternative uses. Opportunity cost can be defined as the revenue forgone by not making the best alternative use. Opportunity cost is the prospective change in cost following the adoption of an alternative machine process, raw materials etc. It is the cost of opportunity lost by diversion of an input factor from use to another.
The Incremental cost is the extra cost of taking one course of action rather than another. It is also called as different cost. The incremental cost is the additional cost due to a change in the level of nature of business activity. The change may take several forms e.g., changing the channel of distribution, adding a new machine, replacing a machine by a better machine, execution of export order etc. Incremental costs will be different in case of different alternatives. Hence, incremental costs are relevant to the management in the analysis for decision making.
The Incremental cost is the extra cost of taking one course of action rather than another. It is also called as different cost. The incremental cost is the additional cost due to a change in the level of nature of business activity. The change may take several forms e.g., changing the channel of distribution, adding a new machine, replacing a machine by a better machine, execution of export order etc. Incremental costs will be different in case of different alternatives. Hence, incremental costs are relevant to the management in the analysis for decision making.
56
Business Administration / Relevant and Irrelevant Costs
« on: March 07, 2017, 01:32:11 PM »
The relevant cost is a cost appropriate in aiding to make specific management decisions. Business decisions involve planning for future and consideration of several alternative courses of action. In this process the costs which are affected by the decisions are future costs.Such costs are called relevant costs because they are pertinent to the decisions in hand. The cost is said to be relevant if it helps the manager in taking a right decision in furtherance of the company's objectives.
57
Business Administration / Disadvantages of First In First Out Method (FIFO):
« on: March 07, 2017, 01:30:10 PM »
This method suffers from the following limitations:
(i) Because of violent changes in prices of materials, it involves somewhat complicated calculations and, therefore, it
involves somewhat complicated calculations and, therefore,increase the changes of clerical errors.
(ii) The prices of issues of materials may not reflect current market prices and, therefore, during the period of inflation,
the charge to production is unreasonably low.
(iii) Comparison between different jobs executed by the firm becomes sometimes difficult. A job commenced a few
minutes before another job might have consumes the supply of lower priced stock. This is particularly because of that
the fact the first job might have completely exhausted the supply of materials of a particular lot.
(i) Because of violent changes in prices of materials, it involves somewhat complicated calculations and, therefore, it
involves somewhat complicated calculations and, therefore,increase the changes of clerical errors.
(ii) The prices of issues of materials may not reflect current market prices and, therefore, during the period of inflation,
the charge to production is unreasonably low.
(iii) Comparison between different jobs executed by the firm becomes sometimes difficult. A job commenced a few
minutes before another job might have consumes the supply of lower priced stock. This is particularly because of that
the fact the first job might have completely exhausted the supply of materials of a particular lot.
58
Business Administration / Advantages of First In First Out Method (FIFO)
« on: March 07, 2017, 01:28:10 PM »
The following are the advantages of this method:
(i) This method is easy to operate, provided the prices of materials do not fluctuate frequently.
(ii) It gives such a value of closing stock which is vary near to current market prices since closing inventory is made of
most recently purchased goods.
(iii) It is a realistic method because it takes into account the normal procedure of issuing goods/inventory, i.e. the
materials are issued to production in the order of their receipts.
(iv) As it is based on historical cost, no unrealized profit enters into the financial statements for the period.
(i) This method is easy to operate, provided the prices of materials do not fluctuate frequently.
(ii) It gives such a value of closing stock which is vary near to current market prices since closing inventory is made of
most recently purchased goods.
(iii) It is a realistic method because it takes into account the normal procedure of issuing goods/inventory, i.e. the
materials are issued to production in the order of their receipts.
(iv) As it is based on historical cost, no unrealized profit enters into the financial statements for the period.
59
Business Administration / OBJECTIVES OF INVENTORY VALUATION
« on: March 07, 2017, 01:25:55 PM »
Following are the objectives of inventory valuation:
a) Determination of Income:
A major objective of inventory valuation is the proper determination of income through the process of
matching appropriate cost against revenues. Gross profit is found out by deducting cost of goods sold from sales. Cost of goods sold is
purchases plus opening stock minus closing stock. Hence, closing stock must be properly valued and brought into accounts. Over valuation of closing stock leads to inflation of the current year profits and deflation of the profits of succeeding years. Similarly, undervaluation leads to deflation of current years profit and inflation of the profit of the succeeding years.
b) Determination of financial position:
In the balance sheet, “inventory’ is a very important item. It is to be shown as current asset in the balance sheet at the end of the year. If the inventory is not properly and correctly valued, to that extent the balance sheet does not give true and fair view of the financial position of the business. Keeping in view the above objectives the auditor’s duty in relation to the verification and valuation of inventories becomes more important.
Therefore, while verifying he should ensure that stock taking is done by responsible a officer, stock figures match with that of stock registers,and the basis of valuation has been consistently the same from year to year. Moreover, he should carry out test checks to ensure the accuracy of valuation.
a) Determination of Income:
A major objective of inventory valuation is the proper determination of income through the process of
matching appropriate cost against revenues. Gross profit is found out by deducting cost of goods sold from sales. Cost of goods sold is
purchases plus opening stock minus closing stock. Hence, closing stock must be properly valued and brought into accounts. Over valuation of closing stock leads to inflation of the current year profits and deflation of the profits of succeeding years. Similarly, undervaluation leads to deflation of current years profit and inflation of the profit of the succeeding years.
b) Determination of financial position:
In the balance sheet, “inventory’ is a very important item. It is to be shown as current asset in the balance sheet at the end of the year. If the inventory is not properly and correctly valued, to that extent the balance sheet does not give true and fair view of the financial position of the business. Keeping in view the above objectives the auditor’s duty in relation to the verification and valuation of inventories becomes more important.
Therefore, while verifying he should ensure that stock taking is done by responsible a officer, stock figures match with that of stock registers,and the basis of valuation has been consistently the same from year to year. Moreover, he should carry out test checks to ensure the accuracy of valuation.
60
Business Administration / Green Campus of DIU
« on: March 07, 2017, 01:00:58 PM »
6th Convocation in Green Campus of DIU