You buy something for 100 and sell it for 200. On paper you are delighted with a 100% profit. In reality, you may already be running into a loss, not just on this transaction but on the customer, the vendor or even the market segment as a whole.
The problem is simple. Businesses often look at selling price minus purchase price and call that profit. But in a real business environment, cost is far more complex. Let us look at where the illusion of profit disappears.
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,balance-sheet
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,cost
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,transaction
Just like rest of the modules in TUHUND, cost center accounting is very simple and you do not have to be a finance expert to work with it. Typically cost center accounting is more basic than management accounting and it does not have to be directly linked to the financial statements. However, some companies do link them. While most of the ERP systems available provide one of the two methods, TUHUND Accounting and Finance module gives you both the options. You may use any one or a combination ...more
