Short Coding Snippet

Concept And Formula Of Labor Cost Variance (LCV) Direct labor cost variance is the difference between the standard direct labor cost for the actual output and the actual labor cost paid. Labor cost variance can be defined as the deviation of the actual direct wages paid from the direct wages specified for the standard output. Formula for calculation of labor cost variance ( LCV ) LCV  = (ST x SR) - ( AT x AR) Where, LCV  = Labor cost variance ST = Standard time SR = Standard rate AT = Actual time AR = Actual rate Labor cost variance represents the total of the labor rate variance and the labor efficiency variance. Therefore,  LCV  = Labor rate variance ( LRV ) + Labor efficiency variance LEV) If the resulting figure is positive, the difference is denoted by F i.e. favorable variance and if the resulting figure is negative, the difference is denoted by U i.e. unfavorable variance.

Explain the meaning Budget & what are types of budget. A budget is a financial plan detailing future income and expenditure. Various households and organizations formulate a budget in order to keep their financial plans in shape. By recognizing what must be spent in the coming weeks, months or years, a person can identify whether or not current income can sustain this spending. Sometimes, upon producing a budget, it will be discovered that long-term changes must be made. Although each budget has the same fundamental rules, there are differing types of budgets. The most common budgets utilized are: • Cash flow budgets. These budgets are utilized widely by individuals, households and businesses. They calculate how much income and expenditure there will be in the near future, to determine whether current spending is maintainable. Everyone is advised to consider formulating a cash flow budget in order to make sure they can maintain their current spending habits. • Sales budgets. The...

Management by objectives Management by objectives  ( MBO ), also known as  management by results  ( MBR ), is a process of defining  objectives within an organization so that  management  and  employees  agree to the objectives and understand what they need to do in the organization in order to achieve them. The term "management by objectives" was first popularized by  Peter Drucker  in his 1954 book  The Practice of Management . [1] The essence of MBO is  participative   goal setting , choosing course of actions and  decision making . An important part of the MBO is the measurement and the comparison of the employee’s actual  performance  with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

MCA EXAM TIME TABLE: Click Here to download  

#OBJECTIVES OF #FINANCIAL MANAGEMENT :- The main objectives of financial management are:- Profit maximization  : The main objective of financial management is profit maximization. The finance manager tries to earn maximum profits for the company in the short-term and the long-term. He cannot guarantee profits in the long term because of business uncertainties. However, a company can earn maximum profits even in the long-term, if:- The Finance manager takes proper financial decisions. He uses the finance of the company properly. Wealth maximization  : Wealth maximization (shareholders' value maximization) is also a main objective of financial management. Wealth maximization means to earn maximum wealth for the shareholders. So, the finance manager tries to give a maximum dividend to the shareholders. He also tries to increase the market value of the shares. The market value of the shares is directly related to the performance of the company. Better the performance, hi...