ACCA F5

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CVP Analysis revision question (NBAA November 2016)

Midundo kabambe a manufacturer of electronic equipment, decided to analyze the profitability of new portable compact disc (CD) player. On CD player line, the company incurred TZS.2,520,000,000 of fixed cost per month while obtaining total revenue  of TZS.6000,000,000 from selling 20,000 units. The variable cost was TZS 120,000 per unit
Recently a new machine used in production of CD player … Read the rest

feautures of job costing

Financial Leverage Ratio – meaning and formula.

Financial leverage results from the presence of fixed financial charges in the firm’s income stream. These fixed charges do not vary with the earnings before interest and tax (EBIT) or operating profits. They have to be paid regardless of the amount of earnings before interest and taxes available to pay them. After paying them, the operating profits (EBIT) belong to … Read the rest

Benefits of Distance Education and Learning from Home

Usefulness and the problems associated with master budget.



A master budget is projected financial plan. It displays the consolidation of the functional budgets to present the overall impact of the projected operational activities on the profitability  of the organization as whole. It is a statement showing the estimation of revenue, costs and profit (loss) for the organization during the budget period.

The following

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Budget Key Factor – all you need to know

A budget key factor or principal budget factor is described by the CIMA London terminology as: “a factor which will limit the activities of an undertaking and which is taken into account in preparing budgets”. The limiting factor is usually the level of demand for the products or services of the undertaking but it could be a shortage of one … Read the rest

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Duties of budget controller in the organization.

To line up the various functions of the Budget Committee, to bring them together and to co-ordinate their efforts in the matter of preparation of target figures, there should be a person usually designated as the Budget Controller, who can provide ready data relating to all the functions. He is more or less the secretary to the budget committee. The … Read the rest

Budget manual - meaning and content.

Budget manual – meaning and content.

A budget manual is a document that sets outstanding instructions governing the responsibilities of persons and the procedures, forms and records relating to the preparation and use of budgets and it is a booklet containing standing instructions regarding the procedures to be followed and the time schedules to be observed.

The following are some important matters dealt with in the

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