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Re-order Level or Ordering Point or Ordering Level: Definition and explanation of re-order point Formula of re-order level or ordering point Examples Definition and explanation: This is that level of…
Spending Variance in Factory Overhead Learning Objective of the article: Define and explain factory overhead spending variance. How is FOH spending variance calculated? Definition: Factory Overhead spending variance is the difference…
Renewal of a Bill of Exchange: Learning Objectives: Make journal entries in the books of drawer and acceptor when the original bill is cancelled and a new bill is drawn…
Specific Environment Definition: The part of the environment that is directly relevant to the achievement of an organization's goals.
Learning Objectives: Define and explain traceable and common fixed costs or expenses. What is the difference between traceable and common fixed costs? The most puzzling aspect of segmented income statements…
Relevant Cost Definition: A cost that differs between alternatives in a particular decision. In managerial accounting, this term is synonymous with avoidable cost and differential cost.
Relevant Range Definition: The range of activity within which assumptions about variable and fixed cost behavior are valid.
Specific Cost Method Definition: Under this method specific cost of materials issued is charged to production. When materials are purchased for a particular job, they should be charged to that…
Relaxing (Elevating) the Constraint Definition: An action that increases the capacity of a bottleneck. As a result constraint give some relaxation and productivity or provision of services to customers are…
Total Quality Management (TQM) Definition: Total quality management A approach to continuous improvement that focuses on customers and using teams of front-line workers to systematically identify and solve problems. This…
Regression Line Definition: A line fitted to an array of plotted points. The slope of the line, denoted by the letter b in the linear equation Y = a +…
Special Order Definition: A one-time order that is not considered part of the company's normal ongoing business.
Recording Cost of Goods Manufactured and Sold in Job Order Costing: Cost of Goods Manufactured (COGM): When a job has been completed, the finished out put is transferred from the…
Total Quality Management (TQM) System: Learning objective of the article: Define and explain total quality management (TQM). What are the advantages and disadvantages of total quality management. Definition and explanation…
Insolvency of Acceptor in Bills of Exchange: Learning Objectives: How the matter is treated in accounting for bills of exchange when the drawee becomes insolvent? Insolvency of a person means…
Variable Costing System A Decision Making Tool for Management: After studying this chapter you should be able to: Explain how variable costing differs from absorption costing and compute unit product…
Recording Transactions of Bill of Exchange: For the purpose of accounting, bills are classified under two heads: Bills receivable Bills payable Bills Receivable: A bill of exchange is treated as…
Socialization Definition: The process that adapts employees to the organization's culture.
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