Margin Definition
Shamsa Rafique Margin Definition: Margin can be defined as net operating income divided by sales. Margin = Net operating income / Sales Sales include all cash as well as credit sales. Example:…
Negotiated Transfer Pricing
Sidra Farid Negotiated Transfer Pricing: Definition and Explanation of negotiated transfer pricing: A negotiated transfer pricing results from discussions between the selling and buying divisions. Negotiated transfer prices have many important advantages.…
Manufacturing Overhead Definition
Manufacturing Overhead Definition: Manufacturing overhead costs are all costs associated with manufacturing except direct materials and direct labor.
Negotiated Transfer Price Definition
Negotiated Transfer Price Definition: Negotiated transfer price is a transfer price agreed on between buying and selling division.
Manufacturing Overhead Budget Definition
Manufacturing Overhead Budget Definition: Manufacturing overhead budget is a detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time…
Positive and Negative Operating Leverage Definition
Positive and Negative Operating Leverage Definition: Positive Operating Leverage: When fixed cost has a greater portion in the total cost structure of the firm / company, a small percentage increase…
Manufacturing Cycle Efficiency (MCE) Definition
Manufacturing Cycle Efficiency (MCE) Definition: Manufacturing cycle efficiency (MCE) is the Process (value-added) time as a percentage of throughput time. OR Quotient of the time required for value-added production divided…
Manufacturing Cost Definition
Manufacturing Cost Definition: Manufacturing cost is equal to total direct materials cost plus direct labor cost plus Factory overhead. It is also called total factory cost. Formula of prime cost…
Cost Classification as Manufacturing and Non-manufacturing
Cost Classification as Manufacturing and Non-manufacturing: Learning objectives of this article: Define and explain manufacturing and non-manufacturing costs. What is the difference between manufacturing and non-manufacturing costs costs? Identify and…
Cost Classification as Manufacturing and Non-manufacturing
Cost Classification as Manufacturing and Non-manufacturing: Learning objectives of this article: Define and explain manufacturing and non-manufacturing costs. What is the difference between manufacturing and non-manufacturing costs costs? Identify and…
Managerial/Management/Cost Accounting Formulas
Managerial/Management/Cost Accounting Formulas: Cost of Goods Manufactured, Sold, and Income Statement Formulas Cost Volume Profit (CVP) Formulas
Diminishing Balance Method of Depreciation
Abida Rehman Diminishing Balance Method of Depreciation: Learning Objectives: Define, explain and give example of the diminishing balance method/written down value method/reducing installment method? What are advantages and disadvantages of diminishing balance…
Managerial or Management or Cost Accounting Terms and Definitions
Managerial or Management or Cost Accounting Terms and Definitions: Following are the most important managerial or management or cost accounting terms. These terms are alphabetically arranged. This arrangement makes easy…
Difficulties Encountered in Process Costing Procedures
Difficulties Encountered in Process Costing Procedures: Learning objectives of this article: What are the difficulties or Limitations in a process costing procedure? Certain difficulties likely to be encountered in actual…
Difficulties / Problems in Costing by Products and Joint Products
Difficulties / Problems in Costing by Products and Joint Products: By products and joint products are difficult to cost because a true joint cost is indivisible. For example, an ore…
Least Cost Decisions
Sana Ahmed Least Cost Decisions: Revenues are not directly involved in some decisions. For example, a company that does not charge for delivery service may need to replace an old delivery truck,…
Learning Organization Definition
Learning Organization Definition: Learning organization is an organization that has developed the capacity to continuously learn, adapt, and change.
Differential Revenue Definition
Differential Revenue Definition: Differential revenue is the difference in revenue between any two alternatives. Example: Revenue from first alternative = $5000; Revenue from second alternative = $4000; Differential revenue =…