Bookkeeping

For example, trend analysis may highlight a growing disparity in pay scales within an industry. This could push businesses to reassess their own wage structures to ensure fairness, contributing to a more socially responsible culture. Although trend analysis is a powerful tool for forecasting future events based on past data, it’s essential to be aware […]

So, it’s advisable to use different absorption bases for the costing in terms of accuracy. It’s a completely estimated amount that changes with the change in the level of activity. However, if there is a difference in the total overheads absorbed in the cost card, the difference is accounted for in the financial statement. Complex

Under the conservatism principle, if there is uncertainty about incurring a loss, you should tend toward recording the loss. Conversely, if there is uncertainty about recording a gain, you should not record the gain. This principle dictates that revenue should be recognised when it is both earned and realisable. It ensures that revenue is not prematurely recognised and