Budget variance

Budget variance is the difference between the budgeted or planned total amount of revenue or expense and the actual amount of revenue or expense. Budget variance helps a business owner to fix an achievable target amount in a year after evaluating last years budget difference.

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Joint Cost

Joint cost is the cost incurred during a manufacturing process. When a manufacturer produces different products with same raw material inputs, then the cost consumed during this whole production process is called joint cost. For example, Dairy firms use milk as the raw material an produces curd, cream, ghee etc.

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Appreciation

Appreciation is the increase in the value of assets over a period of time, unlike depreciation. Appreciation occurred due to certain factors like increase in demand, change in inflation rates etc. It’s totally opposite of depreciation. Appreciation is of two types, capital appreciation & currency appreciation.

Income Tax

As the name suggests it’s a tax levied on incomes or earnings by companies & individuals. The government imposes this tax to provide better infrastructure & facilities to citizens also for some Government’s own activities. Income tax needs to be filed every year by individuals & entities. The only sector exempted from income tax is agriculture.

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Indirect Cost

Indirect cost as the name suggests costs those are not directly linked to any product, project, facility etc. are called indirect costs. Examples are: administration costs, operations costs, product cost etc. Indirect cost is of two types: fixed cost and variable cost.

FIFO

First-In-First-Out
FIFO

FIFO stands for “First in First out”. FIFO is an asset & stock management and valuation method. This method is widely accepted by businesses.

Pharmacy stores mainly use this method to manage stock and to check which one needs to be ordered on urgent basis.