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👉DETERMINING OPTIMUM LEVEL OF ACTIVITY In marginal costing, the optimum level of activity is determined by finding the point where marginal cost (the cost of producing one more unit) equals marginal revenue (the revenue from selling one more unit), maximizing profit.  🔰ABSORPTION COSTING🔰 Absorption costing, sometimes called “full costing,” is a managerial accounting method for capturing all costs associated with manufacturing a particular product. All direct and indirect costs, such as direct materials, direct labor, rent, and insurance, are accounted for when using this method Absorption costing is a method of costing that involves assigning all manufacturing costs, both fixed and variable, to the products or services produced. This means that the cost of a product includes not only the direct costs, such as labor and materials, but also the indirect costs, such as overheads and fixed expenses. Key Features of Absorption Costing 1. *Inclusion of Fixed Costs*: Absorption costin...

🔰COMPUTERISED ACCOUNTING🔰  Computerized accounting refers to the use of computer software and technology to record, store, and manage financial transactions and accounting data. It involves the automation of various accounting tasks, such as: Key Features of Computerized Accounting 1. *Automated Data Entry*: Automatic recording of financial transactions, reducing manual errors. 2. *Data Storage*: Secure storage of financial data, allowing for easy retrieval and analysis. 3. *Accounting Reports*: Generation of financial reports, such as balance sheets, income statements, and cash flow statements. 4. *Tax Compliance*: Automated calculation of taxes, including GST, income tax, and other statutory taxes. 5. *Financial Analysis*: Ability to analyze financial data, identify trends, and make informed business decisions. Benefits of Computerized Accounting 1. *Increased Efficiency*: Reduced manual effort, faster processing, and improved productivity. 2. *Improved Accuracy*: Minimized err...

🍁MODULE 4 tally notes🍁 Tally is a popular accounting software used by many businesses. Generating GST reports in Tally is a crucial task for businesses registered under the Goods and Services Tax (GST) regime. 🔰Enabling GST in Tally🔰 1. *Activate GST*: Go to *Gateway of Tally* > *F11: Features* > *Statutory & Taxation*. Enable *Goods and Services Tax (GST)*. 2. *Set GST Details*: Go to *Gateway of Tally* > *F11: Features* > *Statutory & Taxation* > *GST Details*. Enter your GSTIN, GST Registration Type, and other required details. 🔰Configuring GST Settings🔰 1. *GST Rate Setup*: Go to *Gateway of Tally* > *F11: Features* > *Statutory & Taxation* > *GST Rate Setup*. Configure GST rates for your products/services. 2. *GST Classification*: Go to *Gateway of Tally* > *F11: Features* > *Statutory & Taxation* > *GST Classification*. Classify your products/services under the relevant GST categories. 🔰🔰🔰🔰🔰🔰🔰🔰🔰 LEDGERS RELATING TO T...

MODULE IV 🔰MARGINAL COSTING & ABSORPTION COSTING🔰 🔰Meaning of marginal cost The marginal cost is the change in the total cost that arises when the quantity produced is increased, i.e. the cost of producing additional quantity. 🔰Marginal costing Marginal costing is a cost accounting method that calculates the cost of producing one more unit of a product or service. It's also known as variable costing.  🔰Definition of Marginal Costing According to ICMA, London “Marginal Costing is the ascertainment of marginal cost and of the effect of profit of changes in the volume or type of output, by differentiating between fixed costs and variable costs.” It separates the product costs i.e. variable costs from the period costs i.e. the fixed costs 🔰FEATURES OF MARGINAL COSTING Marginal costing is a cost accounting method that focuses on variable costs to help businesses make decisions. It has several key features, including:  👉Focus on variable costs Marginal costing focuses on ...

🔰🔰 significance of a cash book:🔰🔰 Real-time cash position: A cash book gives a clear picture of a company's available cash at any given time, which is crucial for managing short-term financial needs.   Simplified reconciliation: By recording all cash transactions in one place, it becomes easier to reconcile cash balances with bank statements.   Facilitates budgeting and cash flow analysis: Access to accurate cash data enables businesses to create effective cash flow projections and make informed financial decisions.   Detects fraud: Regular monitoring of a cash book can help identify discrepancies or unauthorized cash withdrawals, aiding in fraud prevention.   Transparency and accountability: A well-maintained cash book enhances transparency within a company by providing a clear audit trail of all cash transactions.   Essential for small businesses: Particularly important for small businesses with limited cash reserves, as it allows for close monitoring of c...