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Budgetary control: It is the system of management control and accounting in which all operations are forecasted and so for as possible planned ahead, and the actual results compared with the forecasted and planned ones.
Cash budget: It is a summary statement of firm’s expected cash inflow and outflow over a specified time period.
Master budget: A summary of budget schedules in capsule form made for the purpose of presenting in one report the highlights of the budget forecast.
Fixed budget: It is a budget, which is designed to remain unchanged irrespective of the level of activity actually attained.
Zero- base- budgeting: It is a management tool which provides a systematic method for evaluating all operations and programmes, current of new allows for budget reductions and expansions in a rational inner and allows reallocation of source from low to high priority programs.
Goodwill: The present value of firm’s anticipated excess earnings.
BRS: It is a statement reconciling the balance as shown by the bank pass book and balance shown by the cash book.
Objective of BRS: The objective of preparing such a statement is to know the causes of difference between the two balances and pass necessary correcting or adjusting entries in the books of the firm.
Responsibilities of accounting: It is a system of control by delegating and locating the Responsibilities for costs.
Profit centre: A centre whose performance is measured in terms of both the expense incurs and revenue it earns.
Cost centre: A location, person or item of equipment for which cost may be ascertained and used for the purpose of cost control.
Cost: The amount of expenditure incurred on to a given thing.
Cost accounting: It is thus concerned with recording, classifying, and summarizing costs for determination of costs of products or services planning, controlling and reducing such costs and furnishing of information management for decision making.
Elements of cost:
(A) Material
(B) Labour
(C) Expenses
(D) Overheads
Components of total costs:
(A) Prime cost
(B) Factory cost
(C)Total cost of production (D) Total c0st
Prime cost: It consists of direct material direct labour and direct expenses. It is also known as basic or first or flat cost.
Factory cost: It comprises prime cost, in addition factory overheads which include cost of indirect material indirect labour and indirect expenses incurred in factory. This cost is also known as works cost or production cost or manufacturing cost.
Cost of production: In office and administration overheads are added to factory cost, office cost is arrived at.
Total cost: Selling and distribution overheads are added to total cost of production to get the total cost or cost of sales.
Cost unit: A unit of quantity of a product, service or time in relation to which costs may be ascertained or expressed.
Methods of costing:
(A)Job costing
(B)Contract costing
(C)Process costing
(D)Operation costing
(E)Operating costing
(F)Unit costing
(G)Batch costing.
Techniques of costing:
(a) marginal costing
(b) direct costing
(c) absorption costing
(d) uniform costing.
Standard costing: Standard costing is a system under which the cost of the product is determined in advance on certain predetermined standards.
Marginal costing: It is a technique of costing in which allocation of expenditure to production is restricted to those expenses which arise as a result of production, i.e., materials, labour, direct expenses and variable overheads.
Derivative: Derivative is product whose value is derived from the value of one or more basic variables of underlying asset.

 Forwards: A forward contract is customized contracts between two entities were settlement takes place on a specific date in the future at today’s pre agreed price.

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