Variable Cost Definition
Sana Ahmed Variable Cost Definition: Variable cost is a cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.
Cost Classifications for Predicting Cost Behavior (Variable and Fixed Cost)
Cost Classifications for Predicting Cost Behavior (Variable and Fixed Cost): Learning objectives of this article: Define and explain variable cost and fixed cost. Give examples of variable and fixed costs.…
Planning Definition
Rubab Ali Planning Definition: Selecting a course of action and specifying how the action will be implemented.
Retiring of a Bill of Exchange
Abida Rehman Retiring of a Bill of Exchange: Learning Objectives: Make journal entries in the books of drawer and drawee when a bill of exchange is retired before it maturity. Definition and…
Absorption costing vs Variable costing
Absorption costing vs Variable costing: Learning Objectives: Define and explain variable and absorption costing. Explain the difference between variable and absorption costing and calculate unit product cost under each method.…
Transfer of Materials Cost to Finished Production–Inventory Valuation
Sidra Farid Transfer of Materials Cost to Finished Production--Inventory Valuation: The ultimate, intended destination of direct materials is finished products or finished goods delivered to customers. The cost of materials used on…
Retainer Fee Approach Definition
Retainer Fee Approach Definition: A method of allocating service department costs in which other departments are charged a flat amount each period regardless of usage of the service involved.
Standard Cost Method Definition
Shamsa Rafique Standard Cost Method Definition: Standard Cost Method method charges issued materials at a predetermined or estimated price reflecting a normal or an expected future price. The difference between the actual…
Responsibility Center Definition
Responsibility Center Definition: Any business segment whose manager has control over cost, revenue, or the use of investment funds.
Transfer at Cost to the Selling Division
Transfer at Cost to the Selling Division: Many companies set transfer prices at either the variable cost or full (absorption) cost incurred by the selling division. Although the cost approach…
Planning and Control Cycle Definition
Planning and Control Cycle Definition: The flow of management activities through planning, directing and motivating, and controlling, and then back to planning again.
Standard Cost Card Definition
Standard Cost Card Definition: Standard cost card is a detailed listing of the standard amounts of materials, labor, and overhead that should go into a unit of product, multiplied by…
Trading Account
Learning Objectives: Define and explain trading account. (What is trading Account ?) What are the items of a trading account. Prepare the format of trading account. What are advantages of…
Responsibility Accounting Definition
Responsibility Accounting Definition: A system of accountability in which managers are held responsible for those items of revenue and cost - and only those items - over which the manager…
Residual Income-A Method to Measure Managerial Performance
Residual Income-A Method to Measure Managerial Performance: Definition and explanation of residual income method: Residual income is the net operating income that an investment center earns above the minimum required…
Staff Definition
Staff Definition: A position in an organization that is only indirectly related to the achievement of the organization's basic objectives. Such positions are supportive in nature in that they provide…
Trade Discount Definition
Trade Discount Definition: Trade discount is an allowance or rebate from the scheduled price granted by the seller to buyer. In other words, Trade discount is an allowance made from…
Residual Income Definition
Residual Income Definition: The net operating income that an investment center earns above the required return on its operating assets.