Operating Department Definition
Sana Ahmed Operating Department Definition: Operating department is a department or similar unit in an organization within which the central purposes of the organization are carried out.
Discretionary Fixed Cost Definition
Abida Rehman Discretionary Fixed Cost Definition: Discretionary fixed costs are those fixed costs that arise from annual decisions by management to spend in certain fixed cost areas, for example advertising and research.
Discounting a Bill of Exchange
Discounting a Bill of Exchange: Learning Objectives: Make journal entries in the books of creditor and debtors at the time of discounting of bill of exchange. If the holder of…
Minimum Limit or Minimum Level of Stock
Shamsa Rafique Minimum Limit or Minimum Level of Stock: Learning Objective: Definite and explain minimum limit or minimum level of stock. How is minimum limit or minimum level calculated? Definition and Explanation:…
Middle Managers Definition
Middle Managers Definition: Middle Managers are managers at the lowest level of the organization who manage the work of non-managerial employees who are directly involved with the production or creation…
Directing and Motivating Definition
Directing and Motivating Definition: Mobilizing employees to carry out plans and run routine operations.
Non-value-added activity Definition
Sidra Farid Non-value-added activity Definition: An activity that consumes resources or takes time but that does not add value for which customers are willing to pay.
Merchandise Purchases Budget Definition
Merchandise Purchases Budget Definition: Merchandise purchase budget is a budget used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.…
Measuring Direct Labor Cost in Job Order Costing System
Measuring Direct Labor Cost in Job Order Costing System: Learning objective of this article: What is a labor time ticket? Give an example of labor time ticket. How direct labor…
Measuring Direct Materials Cost in Job Order Costing System
Measuring Direct Materials Cost in Job Order Costing System: Learning objective of this article: What is a materials requisition form. Give an example of materials requisition form. What is a…
Maximum Level or Maximum Limit of Stock
Maximum Level or Maximum Limit of Stock: Learning Objective: Definite and explain maximum limit or maximum level of stock. How is maximum limit or maximum level calculated? Definition and Explanation:…
Materials Ledger Card–Perpetual Inventory
Materials Ledger Card--Perpetual Inventory: As purchased materials go through the systematic verification of quantities, prices, physical condition, and other checks, the crux of the accounting procedure is to establish a…
Materials/Store Ledger Card Definition
Materials/Store Ledger Card Definition: Materials or store ledger card provides a continuous record of materials received, issued and balance at any time both in quantity and value. In other words,…
Materials and Inventory Cost Control
Materials and Inventory Cost Control: After studying this chapter you should be able to: Materials control is the system that ensures the provision of the required quantity and quality at…
Materials Requisition Form Definition
Materials Requisition Form Definition: A detailed source document that specifies the type and quantity of materials that are to be drawn from the storeroom and identifies the job to which…
Material Requirements Planning (MRP) Definition
Material Requirements Planning (MRP) Definition: Materials requirement planning (MRP) is an operations management tool that uses a computer to help manage materials and inventories. The basic function of material requirement…
Direct Method Cash Flow Definition
Direct Method Cash Flow Definition: A method of computing the cash provided by operating activities in which the income statement is reconstructed on a cash basis from top to bottom.
Direct method Cost of Allocation Definition
Direct method Cost of Allocation Definition: The allocation of all of a service department's costs directly to operating departments without recognizing services provided to other service departments.