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Materials Quantity Variance Definition: Direct materials quantity variance is a measure of the difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by…
Direct Method of Cost Allocation-Service Department Costing: Definition: Direct method is a cost allocation method under which any of the allocation base attributable to the service departments themselves is ignored;…
Materials Price Variance Definition: Materials price variance is a measure of the difference between the actual unit price paid for an item and the standard price, multiplied by the quantity…
Operating Assets Definition: Operating assets are cash, accounts receivable, inventory, plant and equipment, and all other assets held for productive use in an organization.
Material Budgeting | Direct Materials Budget: Learning Objective of the article: Define and explain direct materials budget or Materials Budgeting. Prepare a direct material budget including a schedule of expected…
Direct Method of Cost Allocation-Service Department Costing: Definition: Direct method is a cost allocation method under which any of the allocation base attributable to the service departments themselves is ignored;…
Operating Activities Definition: Transactions that enter into the determination of net income.
Master Budget Definition: Master Budget is a summary of a company's plans in which specific targets are set for sales, production, distribution, and financing activities and that generally culminates in…
Open System Definition: Open system is a system that dynamically interact with their environment.
Market Value Method or Reversal Cost Method: Learning Objectives: Define and explain market value method. Explain the use of market value method while costing by-products Market value method or Reversal…
Direct Materials Price and Quantity Standards: Learning Objective of the articles: Define and explain direct materials price standards and direct materials quantity standards. Explain how direct materials price and quantity…
Omnipotent View of Management Definition: Omnipotent view of management is the view that managers are directly responsible for an organization's success or failure.
Market Price Definition: Market price is the price being charged for an item on the open market. OR The current price at which an asset or service can be bought or…
Linear Programming Techniques-General Observations: The maximization and minimization studies, together with the exercises and presented in this section, are realistic examples of the types of problems management faces. By maximizing…
Linear Programming Solved Problems: This page is under construction, Solved problems about linear programming will be available soon. Sorry for any inconvenience. You may also be interested in other articles…
Linear Programming and Maximization of Contribution Margin - Simplex Method: Learning Objective of the Article: Define and explain linear programming simplex method. How a profit maximization problem is solved using…
Net Present Value (NPV) Method Versus Internal Rate of Return (IRR) Method Learning Objectives: What is the difference between net present value (NPV) method and internal rate of return (IRR)…
Linear Programming Questions and Answers: Questions: Q:1 Define and discuss the linear programming technique, including assumptions of linear programming and accounting data used therein. See answer. Q:2 What is meant…
Shamsa Rafique 
Abida Rehman 
Sana Ahmed 
Sidra Farid