Second Stage Allocation Definition
Shamsa Rafique Second Stage Allocation Definition: The process by which activity rates are used to apply costs to products and customers in activity-based costing.
Targeting Process Improvements
Sidra Farid Targeting Process Improvements Activity Based Costing + Activity Based Management Activity based costing can be used to identify areas that would benefit from process improvements. Indeed, managers often cite this…
Screening Decision Definition
Screening Decision Definition: A decision as to whether a proposed investment meets some preset standard of acceptance or not.
Target Profit Analysis
Definition and Explanation of Target Profit: Target profit is the amount of net operating income or profit that management desires to achieve at the end of a business period. Management…
Screening Decisions and Preference Decisions
Screening Decisions and Preference Decisions: Learning Objectives: Define, explain and give examples of screening and preference decisions. Capital budgeting decisions fall into two broad categories: Screening decisions. Preference decisions. Screening…
Target Costing Approach to Pricing
Learning Objective of the Article: Define and explain target costing. Compute the target cost for a new product or service. What are advantages and disadvantages of target costing approach. In…
Cost Accounting Procedure for Scrap and Waste
Cost Accounting Procedure for Scrap and Waste: (Scrap Accounting) In many manufacturing processes, waste and scrap result from: The processing of materials. Defective and broken parts. Absolute stock. Revisions or…
Factory Overhead Yield Variance
Sana Ahmed Factory Overhead Yield Variance: Learning Objective of the article: Define and explain overhead yield variance. Calculate overhead yield variance when three variance and two variance approaches are used. Formula of…
Scientific Management Definition
Scientific Management Definition: Scientific management means the use of scientific methods to determine the "one best way" for a job to be done.
Variable Overhead Efficiency Variance
Variable Overhead Efficiency Variance: Learning Objective of the article: Define and explain variable overhead efficiency variance. How is variable overhead efficiency variance calculated? What are the reasons / causes of…
Scatter Graph Method Definition
Scatter Graph Method Definition: A method of separating a mixed cost into its fixed and variable elements. Under this method, a regression line is fitted to an array of plotted…
Manufacturing Overhead Cost Standards
Manufacturing Overhead Cost Standards: Learning Objective of the article: How manufacturing overhead standards are set? Procedures for establishing and using standard factory overhead rates are similar to the methods of…
Sales Returns Book
Sales Returns Book: Learning Objectives: Define and explain sales return book. What is a credit note? Prepare a sales returns book and post into ledger. Definition and Explanation: Sales returns…
Manufacturing Overhead Budget
Manufacturing Overhead Budget: Learning Objective of the article: Define and explain manufacturing overhead budget. Prepare a manufacturing overhead budget. The manufacturing overhead budget provides a schedule for all costs of…
Sales Mix Definition
Sales Mix Definition: The relative proportions in which a company's products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.
Overhead Application Definition
Overhead Application Definition: The process of charging manufacturing overhead cost to job cost sheets and to the Work in Process account.
Plan-do-check-act (PDCA) Cycle Definition
Rubab Ali Plan-do-check-act (PDCA) Cycle Definition: A systematic approach to continuous improvement that applies the scientific method to problem solving. This is only definition of plan do check act cycle (PDCA) Click…
Over-applied Overhead Definition
Over-applied Overhead Definition: Over-applied overhead is a credit balance in the Manufacturing Overhead account that arises when the amount of overhead cost applied to Work in Process is greater than…