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Definition= The flow of cash (the cash also includes cash equivalent items i.e. treasury bills, money market funds, investment in shares for three months etc.) inside and outside of the business is known as cash flow  and the statement which shows inflow and outflow of business cash is called statement of cash flow. Contents= The cash flow contents includes business activities like operating activities, investing activities, financing activities. Now the question could be raised in mind that how these activities affects cash flows in answer to the question the following points may be considered: The cash flow inside or outside which is because of operating activities can affect the net income of the business. The cash flow inside or outside which is because of investing activities can affect the non-current assets of the business. And The inflow and outflow of the cash because of financing activities can affect the equities and debts of the business. Imp...

The advantages and disadvantages of the flexible budget according to the research are following: Advantages = 1)  Flexible budget is more important than other budget as it provides the information of original as well as actual budget. 2) It is more useful by financial experts because it helps to show accuracy and deficiencies in the budget. 3) It helps you to decrease spending level after reviewing variances in the budget. 4) It is also useful to avoid expected loss in future. Disadvantages = 1) Flexible budget shows variances between budgets but it does not elaborate the detail or the main reasons of the variances which could be covered. 2) Flexible budget is prepared on specific time for example quarterly or half yearly etc. 3) The main disadvantage of flexible budget is that if it shows unfavorable condition of the budget it will impose bad impact on investors or consumers. 4) Wrong or unprofessional budget preparation may also leads to the poo...

Explanation of Flexible budget with example?  Performance evaluation in budgeting is sometimes difficult when actual activity is different from the activity which is originally budgeted.so in order to measure these differences, flexible budget is used and implemented. Definition= Flexible budget can be defined as the calculation in which original budget  and actual budget is compared with each other in order to find out changes in original and actual budget. these differences are known as variances which shows the variations between these budgets These variances have two types (i) favorable (ii) unfavorable for example if original budget exceeds actual budget it will be unfavorable condition. and if actual budget lower than original budget then its favorable condition . The favorable and unfavorable conditions both depends upon the activities and costs of items and services.Favorable condition is denoted with F and Unfavorable condition is denoted with U. With...

In order to know about Master Budget we must be aware of what is budget and why it is used in every organization after this we can easily understand the explanation of Master Budget. Budget= Budget can be explained in many ways for instance a budget is a financial planning for achieving organizational goals. It is the activity which can also be described as the planning of meeting maximum expenditures with the help of available resources. The process through which budget is prepared is called budgeting . Every consumer uses available resources to meet expenditures and to fulfill basic and other needs according to his/her budget line . Master Budget= For every department of an organization specific budget is prepared like sales budget for sales department, production budget for production department, marketing budget, operating expense budget, capital expense budget and so on. The Master Budget involves long term plan’s set by management of an organization in order t...

Budget= Budget can be explained in many ways for instance a budget is a financial planning for achieving organizational goals. It is the activity which can also be described as the planning of meeting maximum expenditures with the help of available resources. Every consumer uses available resources to meet expenditures and to fulfill basic and other needs according to his/her budget line . Budgeting= Budgeting is the process or the system in which budget is prepared, controlled and planned to be implemented for the purpose of organizational goals. Preparation of budget : In this step financial experts review the financial situation of an organization and the goals to be achieved through which these experts prepare budget. Planning of budget : In planning of budget objectives developed for acquisition and how the resources will be used. Controlling of budget : In controlling, management takes all the necessary steps needed in order to make sure whether all the go...

TQM total quality management is used in organization for the purpose of increasing value of organization by increasing customer satisfaction through adopting various techniques. Definition= Total quality management can be defined as tips and tricks used by an organization to add into organizational environment as basic part to improve the overall quality of goods and services associated with an organization. TQM is considered as a necessary part of organization in order to maintain its efficiency and continuous improved growth. Its basic purpose is to adopt all those techniques which is needed for attaining maximum customer satisfaction. What are the Core Values of TQM? The process of total quality management will start mainly with its core values. The core values of TQM involves: Leadership skills: For the person who is leading and managing organization this is must to have leadership skills and committed leadership inside to achieve all the goals and improve...

Extinction and Punishment both are the main part of Reinforcement theory and These are most commonly known terms which is used to be implemented in every business, institutes and in organizations. However most of the people in the world don't know about the difference between extinction and punishment, its advantages and disadvantages. Definition of Punishment= It is often said that people used to punish employees for their undesired act which is against the rules of organization or the business. Definition of Extinction= Extinction can be defined as the step taken by employer in order to lower the reward of employee for his unwanted act in the organization or the business.     Difference Between Extinction and Punishment: Punishment= Punishment is stopping someone to do unwanted things in an organization in order to prevent them to do unwanted things in future time. It is somehow removes the positive consequence to do the same things again and again in ...