Performance Report Definition
Rubab Ali Performance Report Definition: Performance report is the detailed report comparing budgeted data to actual data.
Multiple Predetermined Overhead Rates Definition
Shamsa Rafique Multiple Predetermined Overhead Rates Definition: A costing system in which there are multiple overhead cost pools with a different predetermined rate for each cost pool, rather than a single predetermined…
Out-of-Pocket Costs Definition
Sana Ahmed Out-of-Pocket Costs Definition: Out of Pocket Cost is actual cash outlays for salaries, advertising, repairs, and similar costs.
Multiple Predetermined Overhead Rates
Multiple Predetermined Overhead Rates: Learning Objectives of the Article: What are multiple predetermined overhead rates? What is the need of calculating multiple predetermined overhead rates? When a single predetermined overhead…
Profit and Loss Account in Statement Form/Income Statement
Profit and Loss Account in Statement Form/Income Statement: Trading and profit and loss account/income statement may be prepared either in account form (T form) or in report form (statement form).…
Return on Investment (ROI) Method for Measuring Managerial Performance
Abida Rehman Return on Investment (ROI) Method for Measuring Managerial Performance: In a truly decentralized company, segment managers are given a great deal of autonomy. Profit and investment centers are virtually independent…
Quantitative Approach Definition
Sidra Farid Quantitative Approach Definition: The quantitative approach involves the use of quantitative techniques to improve decision making. This approach is also called operations research or management science.
More About Capital and Revenue Expenditures
More About Capital and Revenue Expenditures: Capitalized or Deferred Revenue Expenditures: Where a certain revenue expenditure incurred is of such a nature that its benefit is likely to be spread…
Raw Materials Definition
Raw Materials Definition: Materials that are used to make a product. A finished product of a firm can be a raw material for another firm. For example plastic is a…
Production Budget Definition
Production Budget Definition: Production budget is a detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs.…
Modified Accelerated Cost Recovery System (MACRS) Definition
Modified Accelerated Cost Recovery System (MACRS) Definition: A method of depreciation required for income tax purposes that depends on which of nine property classes an asset belongs.
Ranking Investment Projects – The Preference Decisions
Ranking Investment Projects - The Preference Decisions: Learning Objectives: Define and explain screening and preference decisions. Rank investment projects in order of preference. When considering investment opportunities, managers must make…
Payback Period Definition
Payback Period Definition: Payback period is the length of time that it takes for a project to recover its initial cost out of the cash receipts that it generates.
Mixed Cost or Semi-variable Cost
Mixed Cost or Semi-variable Cost: Learning Objective of this Article: Define and explain mixed or semi-variable cost. Give examples of mixed costs. Analyze mixed cost using high-low point method. Definition…
Payback Period Method for Capital Budgeting Decisions
Payback Period Method for Capital Budgeting Decisions: Learning Objectives of the Article: Define and Explain payback period. Determine the payback period for an investment project. What are the advantages and…
Range of Acceptable Transfer Price Definition
Range of Acceptable Transfer Price Definition: The range of transfer price within which the profits of both the selling division and the buying division would increase as a result of…
Mixed Cost Definition
Mixed Cost Definition: Mixed cost is the cost that contains both variable and fixed cost elements. Relevant Terms: Fixed cost Variable cost
Quality of Conformance Definition
Quality of Conformance Definition: The degree to which a product or service meets or exceeds its design specifications and is free of defects or other problems that mar its appearance…