Human Skills Definition
Sana Ahmed Human Skills Definition: Human skills involve the ability to work well with other people both individually and in group. Because managers deal directly with people, this skill is crucial! Managers…
Designing and Implementing Activity Based Costing (ABC) System
Shamsa Rafique Designing and Implementing Activity Based Costing (ABC) System: Experts agree on several essential characteristics of any successful implementation of activity based costing system. First, the initiative to implement activity based…
Activity-based costing (ABC) Definition
Sidra Farid Activity-based costing (ABC) Definition A costing method based on activities that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore…
Factory Overhead Idle Capacity Variance
Factory Overhead Idle Capacity Variance: Learning Objective of the article: Define and explain factory overhead idle capacity variance. How is FOH idle capacity variance calculated? What are the reasons of…
Activity Based Costing (ABC) System and Top Management
Activity Based Costing (ABC) System and Top Management Learning Objectives: Understand the importance of the support of top management in the implementation of activity based costing system. Experts agree on…
Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System
Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System: Learning Objectives: Why net operating income figure under variable costing and absorption costing systems are almost…
Human Factors in Budgeting
Human Factors in Budgeting: The success of a budget program also depends on: The degree to which top management accepts the budget program as a vital part of the company's…
Ideal Standards Definition
Ideal Standards Definition: Standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times.
Treatment of Costs Under Activity Based Costing (ABC) System
Treatment of Costs Under Activity Based Costing (ABC) System Learning Objectives: How manufacturing, non-manufacturing and idol capacity costs are treated under activity based costing system? Contents: Non-manufacturing costs and activity…
How a Bill of Exchange Functions
How a Bill of Exchange Functions: In order to fully grasp the transactions relating to bill of exchange we thoroughly learn the procedure. The following example will make it clear.…
Cost of Capital Definition
Abida Rehman Cost of Capital Definition: The overall cost to an organization of obtaining investment funds, including the cost of both debt sources and equity sources.
Cost of Acquiring Materials | Materials Acquisition Cost
Cost of Acquiring Materials | Materials Acquisition Cost: A guiding principle in accounting for the cost of materials is that all costs incurred in entering a unit of materials into…
Ideal Standards Definition
Ideal Standards Definition: Standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times.
Cost Object Definition
Cost Object Definition: A cost object is anything for which cost data are desired. Examples of possible cost objects are products, product lines, customers, jobs, and organizational subunits such as…
Horizontal/Trend Analysis Definition
Horizontal/Trend Analysis Definition: A side-by-side comparison of two or more years' financial statements. Click here to read full article about horizontal or trend analysis. Relevant terms: Vertical Analysis
Hindrances/Problems to Proper Cost Assignment in Segmented Reporting
Hindrances/Problems to Proper Cost Assignment in Segmented Reporting: For segment reporting to accomplish its intended purposes, costs must be properly assigned to segments. If the purpose is to determine the…
Cost Driver Definition
Cost Driver Definition: Cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes overhead costs.
High-Low Point Method Definition
High-Low Point Method Definition: A method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low levels of…