Scatter Graph Method Definition
Shamsa Rafique Scatter Graph Method Definition: A method of separating a mixed cost into its fixed and variable elements. Under this method, a regression line is fitted to an array of plotted…
Manufacturing Overhead Cost Standards
Sana Ahmed Manufacturing Overhead Cost Standards: Learning Objective of the article: How manufacturing overhead standards are set? Procedures for establishing and using standard factory overhead rates are similar to the methods of…
Sales Returns Book
Sales Returns Book: Learning Objectives: Define and explain sales return book. What is a credit note? Prepare a sales returns book and post into ledger. Definition and Explanation: Sales returns…
Manufacturing Overhead Budget
Manufacturing Overhead Budget: Learning Objective of the article: Define and explain manufacturing overhead budget. Prepare a manufacturing overhead budget. The manufacturing overhead budget provides a schedule for all costs of…
Sales Mix Definition
Sales Mix Definition: The relative proportions in which a company's products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.
Overhead Application Definition
Overhead Application Definition: The process of charging manufacturing overhead cost to job cost sheets and to the Work in Process account.
Plan-do-check-act (PDCA) Cycle Definition
Rubab Ali Plan-do-check-act (PDCA) Cycle Definition: A systematic approach to continuous improvement that applies the scientific method to problem solving. This is only definition of plan do check act cycle (PDCA) Click…
Over-applied Overhead Definition
Over-applied Overhead Definition: Over-applied overhead is a credit balance in the Manufacturing Overhead account that arises when the amount of overhead cost applied to Work in Process is greater than…
Physical Inventory – Inventory Valuation
Physical Inventory - Inventory Valuation: Even with a perpetual inventory system, periodic physical counts are necessary to discover and eliminate description between the actual count and the balances on materials…
Overall or Net Factory Overhead Variance
Overall or Net Factory Overhead Variance: Definition: Overall or net factory overhead variance is the difference between actually incurred factory overhead and expenses charged into process using the standard factory…
Sales Day Book
Sales Day Book: Definition and Explanation: A sales book is also known as sales day book is a book of original entry in which are recorded the details of credit…
Over trading and Under Trading
Over-trading and under-trading are facets of over and under-capitalization. Over trading is a curse to the business. Over Trading : A company which is under-capitalized will try to do too…
Perpetual Inventory System Definition
Perpetual Inventory System Definition: Perpetual inventory system may be defined as a method of recording stores balances after every receipt and issue to facilitate regular checking and to obviate closing…
Sales Budget Definition
Sales Budget Definition: Sales budget is a detailed schedule showing the expected sales for coming periods; these sales are typically expressed in both dollars and units.
Over-capitalization and Under-capitalization
Over-capitalization and Under-capitalization: The total amount of funds available to an undertaking should be neither too much nor too low. An important question, therefore is the question of capitalization of…
Quantitative or Physical Unit Method–Allocating Joint Product Cost
Sidra Farid Quantitative or Physical Unit Method--Allocating Joint Product Cost: Learning Objectives: Explain quantitative or physical unit method of joint cost allocation. Quantitative or physical unit method attempts to distribute the…
Periodic Inventory System Definition
Periodic Inventory System Definition: Periodic inventory system is that does not require a day-to-day record of inventory changes. Costs of materials used and costs of goods sold cannot be calculated…
Multiple Regression Definition
Multiple Regression Definition: An analytical method required in those situations where variations in a dependent variable are caused by more than one factor.