Contingency Approach Definition
Abida Rehman Contingency Approach Definition: An approach that says that organizations are different face different situations (contingencies) and require different ways of managing.
Gross Profit Ratio (GP Ratio)
Robert Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a percentage. It expresses the relationship between gross profit and sales. Components: The basic components for the calculation of gross profit ratio are gross profit and net sales.Net sales means that sales minus…
Fixed Manufacturing Overhead Cost Deferred in Inventory Definition
Sana Ahmed Fixed Manufacturing Overhead Cost Deferred in Inventory Definition: The portion of the fixed manufacturing overhead cost of a period that goes into inventory under the absorption costing method as a…
Fixed Manufacturing Overhead Cost Released From Inventory Definition
Fixed Manufacturing Overhead Cost Released From Inventory Definition: The portion of the fixed manufacturing overhead cost of a prior period that becomes an expense of the current period under the…
Break Even Point Definition
Shamsa Rafique Break Even Point Definition: Break even point is defined as the level of sales at which profit is zero. The break-even point can also be defined as the point where…
Constraint Definition
Constraint Definition: A constraint is anything that prevents an organization or individual from getting more of what it wants. Or a limitation under which a company must operate, such as…
Consignment Accounting Questions and Answers
Consignment Accounting Questions and Answers: Learning Objectives: Answer the various general questions about consignment accounting. Theoretical Questions: Distinguish between a sales and consignment. Click here to see answer. What is…
Consignment Accounting Exercises and Problems
Consignment Accounting problems and exercises: Learning Objectives: Prepare journal entries, consignment account and consignee account in the books of consignor. Prepare journal entries and consignor account in the books of…
Fixed Installment Method or Straight Line Method or Original Cost Method of Depreciation
Fixed Installment Method or Straight Line Method or Original Cost Method of Depreciation: Learning Objectives: Define, explain and give example of fixed installment or straight line or original cost method.…
Gross Profit Analysis (GP Analysis)
Gross Profit Analysis (GP Analysis): After studying this chapter you should be able to: Gross profit is the difference between the cost of goods sold and sales. Since the adherence of the actual…
Break Even Point Analysis-Definition, Explanation Formula and Calculation
Break Even Point Analysis-Definition, Explanation Formula and Calculation: Learning Objectives: Define and explain break even point. How is it calculated? What are its advantages, assumptions, and limitations? Definition of Break…
Fixed Cost Definition
Fixed Cost Definition: A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a…
Liquid or Liquidity Ratio / Acid Test or Quick Ratio
Liquid or Liquidity Ratio / Acid Test or Quick Ratio: Definition: Liquid ratio is also termed as "Liquidity Ratio", "Acid Test Ratio" or "Quick Ratio". It is the ratio of liquid…
Conceptual Skills Definition
Conceptual Skills Definition: Conceptual Skills are the skills managers must have to think and to conceptualize about abstract and complex situations. Using these skills, managers must be able to see…
Fixed Assets Turnover Ratio
Fixed Assets Turnover Ratio: Definition: Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern.…
Net Profit Ratio (NP Ratio)
Definition of net profit ratio: Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as percentage. Components of net profit ratio: The two basic…
Fixed Assets to Proprietor’s Fund Ratio
Fixed Assets to Proprietor's Fund Ratio: Definition: Fixed assets to proprietor's fund ratio establishes the relationship between fixed assets and shareholders funds. The purpose of this ratio is to indicate…
Break Even Point Formula Analysis and Calculation
Break Even Formula ,analysis, definition and Calculation: Learning Objectives: Define and explain break even point equation. How break even point is calculated by formula or methods of estimating break even point?…