Zero Based Budgeting (ZBB) Definition
Sana Ahmed Zero Based Budgeting (ZBB) Definition: A method of budgeting in which managers are required to justify all costs as if the programs involved were being proposed for the first time.…
Zero Based Budgeting (ZBB):
Zero Based Budgeting (ZBB): Learning Objective of the article: Define and explain the term "zero based budgeting" and "incremental budgeting" in managerial accounting. Explain the importance and use of zero…
Postaudit of Investment Projects
Rubab Ali Postaudit of Investment Projects: After an investment project has been approved and implemented, a postaudit should be conducted. A postaudit involves checking whether or not expected results are actually realized.…
Turnover Definition
Sidra Farid Turnover Definition: Turnover is the amount of sales generated in an investment center for each dollar invested in operating assets. It is computed by dividing sales by the average operating…
Yield Definition
Yield Definition: A term synonymous with internal rate of return and time-adjusted rate of return.
Volume Variance Definition
Volume Variance Definition: The variance that arises whenever the standard hours allowed for the output of a period are different from the denominator activity level that was used to compute…
Workforce Diversity Definition
Abida Rehman Workforce Diversity Definition: A workforce that is more heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect differences.
Preparing Trial Balance / Accuracy of Ledger
Preparing Trial Balance / Accuracy of Ledger: Learning Objectives: Define and explain trial balance. What are the advantages of preparing a trial balance? What are the different methods of preparing…
Factory Overhead Volume Variance
Factory Overhead Volume Variance: Learning Objective of the article: Define and explain factory overhead volume variance. How is FOH volume variance calculated? Contents: Definition Formula Example Definition: Factory overhead volume…
Vertical Integration Definition
Vertical Integration Definition: The involvement by a company in more than one of the steps from production of basic raw materials to the manufacture and distribution of a finished product.
Standard Costing System Discussion Questions and Answers
Shamsa Rafique Standard Costing System Discussion Questions and Answers: Questions: (a) Define standard costs. (b) Name some advantages of standard cost system. See answer A team of management consultants and company executives…
Work-in-Process Definition
Work-in-Process Definition: Units of product that are only partially complete and will require further work before they are ready for sale to a customer.
Vertical Analysis and Common Size Statements
Vertical Analysis and Common Size Statements: Definition and Explanation of Vertical Analysis and Common Size Statements: Vertical analysis is the procedure of preparing and presenting common size statements. Common size…
Revaluation Method of Depreciation
Revaluation Method of Depreciation: Learning Objectives: Define and explain the revaluation method of depreciation. When and where this method is used? As the name implies under revaluation method, the assets…
Vertical Analysis Definition
Vertical Analysis Definition: Vertical analysis presentation of a company's financial statements in common-size form is called vertical analysis.
Standard Costs-Management by Exception
Standard Costs-Management by Exception: Learning Objective of the Article: Define and explain the terms "standard cost" and "management by exception". Definition and Explanation of Standard Cost and Management by Exception:…
Standard Costing and Variance Analysis Formulas
Standard Costing and Variance Analysis Formulas: Learning Objective of the article: Learn the formulas to calculate direct materials, direct labor and factory overhead variances.(Formula of Variance ) This is a collection…
Return on Investment (ROI) Definition
Return on Investment (ROI) Definition: Net operating income divided by average operating assets. It also equals margin multiplied by turnover.