Set Transfer Price at Market Price
Shamsa Rafique Set Transfer Price at Market Price: Some form of the competitive marketed price (i.e., the price charged for an item on the open market) is often regarded as the best…
Time-Adjusted Rate of Return Definition
Sidra Farid Time-Adjusted Rate of Return Definition: This term is synonymous with internal rate of return.
Unit-Level Activities Definition
Sana Ahmed Unit-Level Activities Definition: Activities that arise as a result of the total volume of goods and services that are produced, and that are performed each time a unit is produced.
Reciprocal Method of Cost Allocation – Service Department Costing
Abida Rehman Definition: Reciprocal method is a method of allocating service department costs to other departments that gives full recognition to interdepartmental services. Explanation: The reciprocal method gives full recognition to interdepartmental…
Service Department Definition
Service Department Definition: A department that provides support or assistance to operating departments and that does not engage directly in production or in other operating activities of an organization.
Throughput Time Definition
Throughput Time Definition: The time required to make a completed unit of product starting with raw materials. Throughput time is also known as cycle time.
Over-applied and Underapplied Overhead
Over-applied and Underapplied Overhead Learning objectives of this article: Define, explain and calculate under-applied and over-applied overhead rate. Give an example. Definition and Explanation of Over and Underapplied Overhead: Since…
Service Department Costing
Service Department Costing: After studying this chapter you should be able to: Difference between service department and operating department: Most of the large organizations have both operating departments and service…
Theory of constraints (TOC) Definition
Theory of constraints (TOC) Definition: Theory of constraints (TOC) management approach that emphasizes the importance of managing constraints. This is only definition of theory of constraints (TOC). Click here to…
Under-Applied Overhead Definition
Under-Applied Overhead Definition: A debit balance in the Manufacturing Overhead account that arises when the amount of overhead cost actually incurred is greater than the amount of overhead cost applied…
Receiving Materials
Receiving Materials: The function of the receiving department is to: unload and unpack incoming materials; check quantities received against the shippers packing list; identify goods received with descriptions on the…
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Capital Budgeting Decisions With Uncertain Cash Flows
Capital Budgeting Decisions With Uncertain Cash Flows: Learning Objectives: Evaluate an investment project that has uncertain cash flows. The analysis in this chapter (capital budgeting decisions) has assumed that all…
Selling and Administrative Expense Budget Definition
Selling and Administrative Expense Budget Definition: Selling and administrative budget is a detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period.
Receipt and Payment Account
Receipt and Payment Account: Learning Objectives: Define and explain receipt and payment account. Why a receipt and payment account is prepared? Prepare a receipt and payment account. Definition and Explanation:…
Liability Disclaimer – Terms of Use
Liability Disclaimer - Terms of Use: The information, services and products available to you on this Web site may contain errors and is subject to periods of interruption. While Accountingformanagement.com…
Selling and Administrative Expense Budget
Selling and Administrative Expense Budget: Learning Objectives: Define and explain selling and administrative budget. Prepare selling and administrative budget. Definition and Explanation: Selling and administrative expense budget lists the budgeted…
Ray H. Garrison
Ray H. Garrison: Ray H. Garrison is emeritus professor of accounting at Brigham Young University, Provo, Utah. He received his B.S. and M.S. degrees from Brigham Young University and his…