The term “Cost Unit” can be defined as a unit of product or service in relation to which costs are ascertained. As an example cost unit for a mobile telecommunication provider would be call minutes. Cost unit can be tangible and intangible in nature. Examples of tangible cost units are garments produced at apparel manufacturing firms, loaves of bread produced at bakeries,  bars of soap produced by soap manufactures. However, to handle the large bulk of cost units and to [...]

JIT in time concept was initiated in Japan making the Toyata as its mater piece. JIT is system whether company starts manufacturing/purchasing once the customer orders the good effectively making zero inventories. In other words, in a JIT environment materials are purchased and produced as and when it is needed. The whole idea is based on the phrase provide the goods just in time as promised when the order is placed by the customer. The [...]

Minimum Variance Portfolio The minimum variance portfolio theory was adopted from the Portfolio Theory where the variance level of a portfolio is adopted to indicate the risk level of the portfolio. The variance portfolio is defined as a portfolio of assets which has a low beta value when compared to the beta value of the individual financial assets included in the portfolio. Beta value indicates the volatility of the portfolio indicating the risk level attached [...]

Jaws ratio is defined as the difference between the percentage growth in income and the percentage growth in expenses. It is a key indicator of financial performance of an organizations and it is been widely used as a tool to control the expenditure and increase the revenue level of the organization. The jaws ratio can be of 02 types namely, Positive Jaws Ratio Negative Jaws Ratio Positive Jaws Ratio Positive jaws ratios occurs at times [...]

These are the broad basic assumptions under which financial statements are prepared and these principles are used by the entire profession in preparing financial accounting information.