System Definition
Abida Rehman System Definition: System is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. System may be a closed system or an open system.
Predetermined Overhead Rate Definition
Rubab Ali Predetermined Overhead Rate Definition: Predetermined overhead rate is a rate used to charge overhead cost to jobs in production; the rate is established in advance for each period by use…
Predetermined Overhead Rate and Capacity
Predetermined Overhead Rate and Capacity: Companies typically base their predetermined overhead rates on the estimated, or budgeted, amount of allocation base for the upcoming period. This is the method that…
Standard Costing and Variance Analysis
Shamsa Rafique Standard Costing and Variance Analysis: After studying this chapter you should be able to: Explain how direct materials standard and direct labor standards are set. Compute the direct materials price…
Systems of Accounting
Systems of Accounting: Learning Objectives: Define and explain cash system and accrual system of accounting. There are basically two systems of accounting: Cash System of Accounting. Accrual System of Accounting.…
Working Capital Turnover Ratio
Sidra Farid Working Capital Turnover Ratio: Definition: Working capital turnover ratio indicates the velocity of the utilization of net working capital. This ratio represents the number of times the working capital is…
Practical Standards Definition
Practical Standards Definition: Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.
Postaudit Definition
Postaudit Definition: The follow-up after a project has been approved and implemented to determine whether expected results are actually realized.
Workplace Spirituality Definition
Workplace Spirituality Definition: The recognition that people have an inner life that nourishes is nourished by meaningful work that takes place in the context of community.
Who is A Certified Management Accountant
Who is A Certified Management Accountant: A management accountant who possesses the necessary qualification and who possesses a rigorous professional exam earns the right to be known as a certified…
Definition and Explanation of Capital Budgeting
Definition and Explanation of Capital Budgeting: Learning Objective of this article: Define and explain the term "capital budgeting". What is meant by the term "investment in capital budgeting decisions"? Explain…
Typical Capital Budgeting Decisions
Typical Capital Budgeting Decisions: Learning Objectives: What type of business decisions require capital budgeting analysis? What types of business decisions require capital budgeting analysis? Business decisions that require capital budgeting…
Weighted Average Method–Allocating Joint Product Cost
Weighted Average Method--Allocating Joint Product Cost: Learning Objectives: Explain the procedure of allocating joint product cost when weighted average method is used. many industries, the previously described methods do not…
Weighted Average Method Definition
Weighted Average Method Definition: Issuing materials at an average cost assumes that each lot taken from the storeroom is composed of uniform quantities from each shipment in stock at the…
Two Column Cash Book / Double Column Cash Book
Two Column Cash Book / Double Column Cash Book : Learning Objectives: Define and explain a two/double column cash book. Prepare a two column cash book. What is the difference…
Materials Purchasing Forms
Sana Ahmed Materials Purchasing Forms: The principle forms required in purchasing are the purchase requisition form and the purchase order form. Purchase Requisition Form: The purchase requisition originates with (1) stores or…
Working Capital Definition
Working Capital Definition: The excess of current assets over current liabilities. Working Capital = Current Assets − Current Liabilities
Standard Costing and Variance Analysis Problems & Solution
Standard Costing and Variance Analysis Problems & Solution: Problem 1: Materials Variance Analysis: The Schlosser Lawn Furniture Company uses 12 meters of aluminum pipe at $0.80 per meter as standard…