Direct Exchange Transaction Definition
Abida Rehman Direct Exchange Transaction Definition: Transactions involving only non-current balance sheet accounts. For example, a company might issue common stock that is directly exchanged for property.
Cost Classifications for Assigning Costs to Cost Objects (Direct and Indirect Cost)
Cost Classifications for Assigning Costs to Cost Objects (Direct and Indirect Cost): Learning Objective of this article: Define and explain direct and indirect cost. Give examples of direct and indirect…
Direct Costing Definition
Direct Costing Definition: A costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Direct costing is also called marginal costing and…
Direct Cost Definition
Direct Cost Definition: Direct cost is the cost that can be easily and conveniently traced to the particular cost object under consideration.
The Use of Net Present Value(NPV) Method in Capital Budgeting Decisions – Discounted Cash Flows
Sidra Farid The Use of Net Present Value(NPV) Method in Capital Budgeting Decisions - Discounted Cash Flows: Learning Objectives: Define and explain the net present value method. Evaluate the acceptability of an…
Margin of Safety Definition
Shamsa Rafique Margin of Safety Definition: Margin of safety can be defined as the excess of budgeted (or actual) sales over the break-even volume of sales. Equation or Formula of Margin of…
Marginal Costing Definition
Marginal Costing Definition: Marginal Costing is a costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Marginal costing is also called…
Net Present Value Definition
Net Present Value Definition: Net Present Value is the difference between the present value of the cash inflows and the present value of the cash outflows associated with an investment…
Margin of Safety (MOS)
Margin of Safety (MOS): Learning Objectives: Define and explain margin of safety. Calculate margin of safety ratio. What is its significance/importance? Contents: Definition of Margin of Safety (MOS) Formula of…
Net Operating Income Definition
Net Operating Income Definition: Income before interest and income taxes have been deducted.
Margin Definition
Margin Definition: Margin can be defined as net operating income divided by sales. Margin = Net operating income / Sales Sales include all cash as well as credit sales. Example:…
Negotiated Transfer Pricing
Negotiated Transfer Pricing: Definition and Explanation of negotiated transfer pricing: A negotiated transfer pricing results from discussions between the selling and buying divisions. Negotiated transfer prices have many important advantages.…
Manufacturing Overhead Definition
Manufacturing Overhead Definition: Manufacturing overhead costs are all costs associated with manufacturing except direct materials and direct labor.
Negotiated Transfer Price Definition
Negotiated Transfer Price Definition: Negotiated transfer price is a transfer price agreed on between buying and selling division.
Manufacturing Overhead Budget Definition
Manufacturing Overhead Budget Definition: Manufacturing overhead budget is a detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time…
Positive and Negative Operating Leverage Definition
Positive and Negative Operating Leverage Definition: Positive Operating Leverage: When fixed cost has a greater portion in the total cost structure of the firm / company, a small percentage increase…
Manufacturing Cycle Efficiency (MCE) Definition
Manufacturing Cycle Efficiency (MCE) Definition: Manufacturing cycle efficiency (MCE) is the Process (value-added) time as a percentage of throughput time. OR Quotient of the time required for value-added production divided…
Manufacturing Cost Definition
Manufacturing Cost Definition: Manufacturing cost is equal to total direct materials cost plus direct labor cost plus Factory overhead. It is also called total factory cost. Formula of prime cost…