What are different types of accounting techniques?

Administrative Accounting Includes the use of accounting numbers to inform managerial decisions on business activities. This is, unlike financial accounting, which is designed to inform people about the company's financial health and also allow you to calculate tax obligations. Favorite accounting techniques include cost accounting, sources accounting and permeability accounting. There are also some accounting techniques specific to the management of the industry, such as the transfer price in finance and banking. Traditional accounts focus on the total cost and income of the company in order to determine profitability. Cost accounting emphasizes the money that the company has to spend and go to a much more detailed than it is needed in traditional accounts.

In many cases, the total costs will be given more than once, divided into different classifications. These COULD includes fixed and variable costs, direct and indirect costs, or even a classification based on the organizational structure of the company.Such a detailed approach not only gives the company a clearer insight into the income that must be achieved to be profitable, but can also emphasize areas where costs can be better controlled.

Accounting of resources based on the German system known as GrenzplankoSkostenrechnung - which can be translated as flexible analytical planning and accounting - is one of the more complicated management techniques. From the point of view, its resources are the key to business. In such accounts, all costs and element of income are specifically assigned by sources. The intention is to monitor the amount of resources and thus assess how well the company uses its resources.

The accounting value of the throughput measures three main factors, designed to cover all income and expenditure: throughput, investment and operating costs. Performance, which is sales sales minus the cost of raw materials for the relevant products. Investment in this continuousThey include assets such as machinery and equipment, plus unsold stocks. Operating costs are other than raw materials other than raw materials, which means it covers factors such as rent and labor costs. The Company using permeability accounting will usually assess the management decision by likely to increase the permeability and at the same time reduce investment and operating costs.

The prices of transfer is a way to apply the techniques of accounting of administration to banking, where there is no physical goods or production. It includes an attempt to divide the bank's total finance into its various departments. This is done by assigning the financial value of the loan of the department, which brings money, such as customer deposits, and at the same time the introduction of the debit costs for reflecting the money department risks the borrowing to customers.