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Technical Skills Definition: Technical skills include knowledge of and proficiency in certain specialized field, such as engineering, computers, accounting, or manufacturing. These skills are more important at lower level management…
Sell or Process Further Decision Definition: A decision as to whether a joint product should be sold at the split-off point or processed further and sold at a later time…
Self-Imposed Budget Definition: A method of preparing budgets in which managers prepare their own budgets. These budgets are then reviewed by the manager's supervisor, and any issues are resolved by…
Selecting Allocation Base: Costs are ordinarily assigned to products and services by using a two stage process. In first stage, service department and other costs are allocated to operating departments.…
Segmented Financial Information on External Reports: The Financial Accounting Standards Board (FASB) now requires that companies in the united states include segmented financial and other data in their annual reports…
Theory of Constraints (TOC): Learning objectives of the article: Define and explain the concept of theory of constraints (TOC) Give an example of the implementation of theory of constraints. Definition:…
Segment Margin Definition: The amount computed by deducting the traceable fixed costs of a segment from the segment's contribution margin. It represents the margin available after a segment has covered…
Segment Definition: Any part of an organization that can be evaluated independently of other parts and about which the manager seeks financial data. Examples include a product line, a sales…
Second Stage Allocation Definition: The process by which activity rates are used to apply costs to products and customers in activity-based costing.
Targeting Process Improvements Activity Based Costing + Activity Based Management Activity based costing can be used to identify areas that would benefit from process improvements. Indeed, managers often cite this…
Screening Decision Definition: A decision as to whether a proposed investment meets some preset standard of acceptance or not.
Definition and Explanation of Target Profit: Target profit is the amount of net operating income or profit that management desires to achieve at the end of a business period. Management…
Screening Decisions and Preference Decisions: Learning Objectives: Define, explain and give examples of screening and preference decisions. Capital budgeting decisions fall into two broad categories: Screening decisions. Preference decisions. Screening…
Learning Objective of the Article: Define and explain target costing. Compute the target cost for a new product or service. What are advantages and disadvantages of target costing approach. In…
Cost Accounting Procedure for Scrap and Waste: (Scrap Accounting) In many manufacturing processes, waste and scrap result from: The processing of materials. Defective and broken parts. Absolute stock. Revisions or…
Factory Overhead Yield Variance: Learning Objective of the article: Define and explain overhead yield variance. Calculate overhead yield variance when three variance and two variance approaches are used. Formula of…
Scientific Management Definition: Scientific management means the use of scientific methods to determine the "one best way" for a job to be done.
Variable Overhead Efficiency Variance: Learning Objective of the article: Define and explain variable overhead efficiency variance. How is variable overhead efficiency variance calculated? What are the reasons / causes of…
Sidra Farid 
Shamsa Rafique 
Sana Ahmed