Division of Labor Definition
Abida Rehman Division of Labor Definition: The breakdown of jobs into narrow and repetitive tasks is called division of labor. In 1776, Adam Smith published his book The Wealth of Nation, in…
Organization Definition
Sana Ahmed Organization Definition: An organization is a deliberate arrangement of people to accomplish some specific purpose. Each organization has three characteristics; first, each organization has a distinct purpose. This purpose is…
Dividend Yield Ratio
Dividend Yield Ratio: Definition: Dividend yield ratio is the relationship between dividends per share and the market value of the shares. Share holders are real owners of a company and…
Organizational Chart Definition
Organizational Chart Definition: Organizational Chart is a visual diagram of a firm's organizational structure that depicts formal lines of reporting, communication, and responsibility between managers.
Organizational Chart Definition
Organizational Chart Definition: Organizational Chart is a visual diagram of a firm's organizational structure that depicts formal lines of reporting, communication, and responsibility between managers.
Dividend Payout Ratio
Dividend Payout Ratio: Dividend payout ratio is calculated to find the extent to which earnings per share have been used for paying dividend and to know what portion of earnings…
Distribution of Quality Costs/Quality Cost Report
Distribution of Quality Costs/Quality Cost Report: Learning objectives of this article: Prepare and interpret a quality cost report. How to Distribute Quality Costs? A company's total quality cost is likely…
Optional Straight Line Method Definition
Optional Straight Line Method Definition: A method of computing depreciation deductions under MACRS that can be used instead of the MACRS tables.
Disposition of Underapplied or Overapplied Overhead Balances
Disposition of Underapplied or Overapplied Overhead Balances: Learning objective of the article: How is over and under applied overhead is disposed off. Give an example to explain the procedure? What…
Operations Management Definition
Operations Management Definition: The design, operation, and control of the transformation process that converts resources (labor and raw materials etc.) into finished goods or services.
Operation Costing System or Hybrid Costing System
Operation Costing System or Hybrid Costing System: Learning Objectives of this article: What is operation costing or hybrid costing system. Explain with examples. Definition: Operation costing is a hybrid costing…
System Normal Costing Definition
Sidra Farid Normal Costing System Definition: Normal Costing system is a costing system in which overhead costs are applied to jobs by multiplying a predetermined overhead rate by the actual amount of…
Dishonour of a Bill of Exchange
Learning Objectives: Make journal entries when a bill of exchange is dishonoured by the drawee. Definition and Explanation: A bill of exchange is said to be dishonored when the drawee…
Operating Ratio
Definition: Operating ratio is the ratio of cost of goods sold plus operating expenses to net sales. It is generally expressed in percentage. Operating ratio measures the cost of operations…
Operating Leverage Definition
Operating Leverage Definition: Operating leverage is a measure of how sensitive net income is to a given percentage change in sales. It is computed by dividing the contribution margin by…
Valuation and Treatment of Normal and Abnormal Loss in Consignment Accounting
Valuation and Treatment of Normal and Abnormal Loss in Consignment Accounting: Learning Objectives: How are the normal and abnormal losses are calculated and treated in consignment accounting? Normal Loss: Normal…
Operating Leverage and Degree of Operating Leverage (DOL)
Definition and Explanation of Operating Leverage: A lever is a tool for multiplying force. Using a lever, a massive object can be moved with only a modest amount of force.…
Discussion Questions and Answers
Discussion Questions and Answers: Learning Objectives: Find answers of the general questions about Fist in First Out and Average Method of process costing system. Questions: How does the FIFO method…