Standard Quantity Allowed Definition
Shamsa Rafique Standard Quantity Allowed Definition: The amount of materials that should have been used to complete the period's output as computed by multiplying the actual number of units produced by the…
Inventory Purchases Budget for a Merchandising Firm
Sana Ahmed Inventory Purchases Budget for a Merchandising Firm: Learning Objectives: Define and explain an inventory budget. Prepare an inventory budget or merchandising purchase budget. Manufacturing firms prepare production budget but merchandising…
Sub-optimization Definition
Abida Rehman Sub-optimization Definition: An overall level of profitability that is less than a segment or a company is capable of earning.
Sum of the Years’ Digits Method of Depreciation
Sum of the Years' Digits Method of Depreciation: Learning Objectives: Explain the sum of the years' digits method of depreciation. Definition and Explanation: Sum of the Years' Digits Method an…
Standard Hours Per Unit Definition
Standard Hours Per Unit Definition: The amount of labor time that should be required to complete a single unit of product, including allowances for breaks, machine downtime, cleanup, rejects, and…
Preference Decision Definition
Rubab Ali Preference Decision Definition: Preference decision is a decision as to which of several competing acceptable investment proposals is best.
Standard Hours Allowed Definition
Standard Hours Allowed Definition: The time that should have been taken to complete the period's output as computed by multiplying the actual number of units produced by the standard hours…
Sunk Cost Definition
Sunk Cost Definition: Sunk cost is any cost that has already been incurred and that cannot be changed by any decision made now or in the future.
Symbolic View of Management Definition
Symbolic View of Management Definition: The view that managers have only a limited effect on substantive organizational outcomes because of the large number of factors outside their control.
Standard Costing and Variance Analysis Case Study
Standard Costing and Variance Analysis Case Study: Case A: Effect of assumed standard levels Case B: Factory overhead variance analysis Case A: Effect of Assumed Standard Levels: Harden Company has…
System Definition
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
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
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.