management accounting

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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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Current Ratio - meaning and formula.

Current asset turnover ratio – meaning and formula

The current assets turnover ratio ascertains the efficiency with which current assets are used in a business. This ratio is strongly associated with the efficient utilization of cash, receivables, and inventory. A higher value of this ratio indicates greater circulation of current assets while a low ratio indicates a stagnation of the flow of current assets.

The formula for the … Read the rest

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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