Joint Product Cost Definition
Sana Ahmed Joint Product Cost Definition: A joint cost may be defined as that cost which arises from the common processing or manufacturing of products produced from a common raw material. Whenever…
Joint Product Cost Analysis for Managerial Decisions and Profitability Analysis
Joint Product Cost Analysis for Managerial Decisions and Profitability Analysis: Learning Objectives: What is the importance of joint product cost analysis for management. The Securities and Exchange Commission requires that…
International Aspects of Transfer Pricing
Shamsa Rafique International Aspects of Transfer Pricing: The objective of transfer pricing change when multinational corporations involved and the goods and services being transferred cross international borders. The objectives of international transfer…
International Aspects of Quality-ISO 9000 Quality Standards
International Aspects of Quality-ISO 9000 Quality Standards: Many of the tools used in quality management today were developed in Japan after World War II. In statistical process control, Japanese companies…
Advertise Your Business at Accountingformanagement.com
Sidra Farid Advertise Your Business at Accountingformanagement.com The cost for your 728×90 image or text ad at the top of the page is $600 per month. The cost for your 160x600…
International Aspects of Budgeting
International Aspects of Budgeting: A multinational company faces special problems when preparing a budget. The problems arise because of fluctuations in foreign currency exchange rates, the high inflation rates found…
Job Order Costing System Definition
Job Order Costing System Definition: A costing system used in situations where many different products, jobs, or services are produced each period. Click here to read detailed about job order…
Internal Rate of Return Definition
Internal Rate of Return Definition: The discount rate at which the net present value of an investment project is zero; thus, the internal rate of return represents the interest Yield…
Cycle Time Definition
Abida Rehman Cycle Time Definition: Cycle time is the time required to make a completed unit of product starting with raw materials. Cycle time is also known as throughput time.
Application of Manufacturing Overhead Cost in Job Order Costing
Application of Manufacturing Overhead Cost in Job Order Costing: Learning objective of this article: Define and explain predetermined manufacturing overhead applied to work in process rate, how is it calculated?…
Internal Failure Cost Definition
Internal Failure Cost Definition: Internal failure costs are those costs that are incurred as a result of identifying defective products before they are shipped to customers.
Cost Volume Profit (CVP) Relationship in Graphic Form
Cost Volume Profit (CVP) Relationship in Graphic Form: Learning Objectives: Prepare a CVP graph or breakeven chart. The relationships among revenue, cost, profit and volume can be expressed graphically by…
Debt Service Ratio or Interest Coverage Ratio
Debt Service Ratio or Interest Coverage Ratio: Definition: Interest coverage ratio is also known as debt service ratio or debt service coverage ratio. This ratio relates the fixed interest charges…
Job Order Costing Questions and Answers
Job Order Costing Questions and Answers: Questions: Cost accounting is said to consist of three different phases. Name them. See answer. Name four control accounts concerned primarily with cost determination.…
Cost Volume Profit (CVP) Formulas
Cost Volume Profit (CVP) Formulas: Contribution margin = Sales - Variable expenses (manufacturing and non-manufacturing) Net operating income = Contribution margin - Fixed expenses (manufacturing and non manufacturing) Contribution margin…
Advantages of Variable or Direct or Marginal Costing System
Advantages of Variable or Direct or Marginal Costing System Learning Objectives: What are the advantages of variable costing system? Why absorption costing continues to be used almost exclusively for external…
Job Order Costing in Service Companies
Job Order Costing in Service Companies: Job order costing is also used in service organizations such as law firms, movie studios, hospitals, and repair shops, as well as manufacturing companies.…
Customer-Level Activities Definition
Customer-Level Activities Definition: Activities that are carried out to support customers but that are not related to any specific product.