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Segment Reporting and Profitability Analysis-Segmented Income Statements: Learning Objectives: What is segment reporting managerial accounting ? How are segmented income statements prepared? A different kind of income statement is required…
Inventory Turnover Ratio or Stock Turnover Ratio (ITR) : Every firm has to maintain a certain level of inventory or stock of finished goods so as to be able to…
Stock Control: Definition and Explanation: The materials purchased by a concern may be classified as stock items which are taken into store and held until required, or as direct deliveries…
Step Variable Cost Definition: A cost (such as the cost of a maintenance worker) that is obtainable only in large chunks and that increases and decreases only in response to…
Step Method Definition: The allocation of a service department's costs to other service departments, as well as to operating departments, in a sequential manner. The sequence starts with the service…
Step Method of Cost Allocation: Definition: Step method is the method of allocating service department's costs to other service departments, as well as to operating departments, in a sequential manner.…
Statistical Process Control Definition: A charting technique used to monitor the quality of work being done in a workstation for the purpose of immediately correcting any problem.
Purchase of Supplies, Services, and Repairs: Learning Objective of the article: Explain the procedure of Purchasing supplies, services and repairs. The procedure followed in purchasing productive materials should apply to…
Cash Discount Definition: It is an allowance or deduction allowance by a creditors to a debtor. In other words, cash discount is an allowance made by the supplier or creditor…
Static Budget Definition: A budget designed for only one level of activity.
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Purchase of Productive Materials: Learning Objective: Explain the procedure of purchasing productive materials. The actual purchase of all materials is usually made by the purchasing department headed by a general…
Purchase Day Book: Learning Objectives: Define and explain purchases day book. What are the ruling and posting of the purchases book? Prepare a purchases day book or Sales day book.…
Prevention Cost Definition: Prevention costs are those costs that are incurred to keep defects from occurring.
Cash Flow Statement Definition and Explanation of Cash flow statement: The purpose of the statement of cash flows is to highlight the major activities that directly and indirectly impact cash…
Understanding Cash Flow Statement-Format and Sections: Contents: Introduction to cash flow statement Sections of cash flow statement Format of the cash flow statement Introduction to cash flow statement: Three major…
Learning Objectives: Define and explain the terms "profit planning" and "budgeting". What is the difference between planning and control? What are the advantages and disadvantages of budgeting? Contents: Definition and…
Shamsa Rafique 
Sidra Farid 
Rubab Ali 
Sana Ahmed