Uses of Quality Cost Information (Report)
Sana Ahmed Uses of Quality Cost Information (Report): Learning Objectives of this article: What are the advantages and limitations of a quality cost report? A quality cost report has several uses. First…
Simple Rate of Return Definition
Shamsa Rafique Simple Rate of Return Definition: The rate of return computed by dividing a project's annual accounting net income by the initial investment required.
Total Factory Cost Definition
Sidra Farid Total Factory Cost Definition: Total factory cost is equal to total direct materials cost plus direct labor cost plus Factory overhead. Formula of prime cost can be written as: Prime…
Managerial Usefulness/Importance of Variance Analysis
Managerial Usefulness/Importance of Variance Analysis: Learning Objectives: Explain the importance of variance analysis for management in decision making process. Costs of production are effected by internal factors over which management…
Similarities between Job Order and Process Costing System
Similarities Between Job Order and Process Costing System: Learning Objectives of this article: What are the differences and similarities in process costing and job order costing procedures. Similarities between job…
Top Managers Definition
Top Managers Definition: Managers at or near the top level of the organization who are responsible for making organization-wide decisions and establishing the goal and plans that effect the entire…
Shadow Prices
Shadow Prices: Definition and Explanation of Shadow Price: The determination of the optimum mix to maximize the contribution margin or to minimize cost assumes a defined set of constraints. It…
Internal Rate of Return (IRR) Method in Capital Budgeting Decisions
Internal Rate of Return (IRR) Method in Capital Budgeting Decisions: Learning Objectives: Define and explain the internal rate of return (IRR) in Accounting. Evaluate the acceptability of an investment project…
Time Value of Money
Time Value of Money: Learning Objectives: Explain the concept of time value of money. Why time value of money concept is important in capital budgeting analysis? Explanation of of the…
Setup Definition
Setup Definition: Activities that must be performed whenever production is switched over from making one type of item to another.
Recognition of Gross Revenue Method–By Products Costing
Abida Rehman Recognition of Gross Revenue Method--By Products Costing: This method is typical non-cost procedure in which the final inventory cost of the main product is overstated to the extent that some…
Time Ticket Definition
Time Ticket Definition: Time ticket is a detailed source document that is used to record an employee's hour-by-hour activities during a day.
Use of Information Technology in Job Order Costing System
Use of Information Technology in Job Order Costing System: Learning objectives of the articles: What are advantages of using bar code technology in job order costing system. Bar code technology…
Setting Standard Costs – Ideal and Practical Standards
Setting Standard Costs - Ideal and Practical Standards: Learning Objective of the Article: Who provide the inputs in setting standard costs? Define and explain ideal and practical standards. What is…
Time and Material Pricing in Service Companies
Time and Material Pricing in Service Companies: Learning Objective of the Article: Define and explain time and material pricing. Calculate and use billing rates used in time and materials pricing.…
Reciprocal Services Definition
Reciprocal Services Definition: Services provided between service departments. Also see Interdepartmental services.
Universality of Management Definition
Universality of Management Definition: Universality of management means the reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational areas, and…
Reciprocal Method Definition
Reciprocal Method Definition: A method of allocating service department costs that gives full recognition to interdepartmental services.