Job Order Costing System
Sana Ahmed Job Order Costing System: After studying job order costing system chapter you should be able to: Distinguish between process costing and job order costing and identify companies that would use…
Job Cost Sheet Definition
Job Cost Sheet Definition: A form prepared for each job that records the materials, labor, and overhead costs charged to the job.
Indirect Method of Cash Flow Definition
Shamsa Rafique Indirect Method of Cash Flow Definition: A method of computing the cash provided by operating activities that starts with net income and adjusts it to a cash basis. It is…
Cost-Volume-Profit (CVP) Graph Definition
Abida Rehman Cost-Volume-Profit (CVP) Graph Definition: The relations between revenues, costs, and level of activity in an organization presented in graphic form.
Contribution Margin and Basics of Cost Volume Profit (CVP) Analysis
Contribution Margin and Basics of Cost Volume Profit (CVP) Analysis: Learning Objectives: Define and explain contribution margin. Prepare a contribution margin format income statement. What are the advantages of calculating…
Indirect Cost Definition
Indirect Cost Definition: Indirect cost is a cost that cannot be easily and conveniently traced to the particular cost object under consideration.
Indirect Materials Definition
Indirect Materials Definition: Small items of material such as glue and nails. These items may become an integral part of a finished product but are traceable to the product only…
Cost Volume Profit Relationship – (CVP Analysis)
Cost Volume Profit Relationship - (CVP Analysis): After studying this chapter you should be able to: Explain the objectives of cost volume profit analysis (CVP Analysis & concept)? Define and…
Advantages of Bills of Exchange
Sidra Farid Learning Objective: What are the main advantages of bills of exchange? The following are the advantages of a bill of exchanges: It is a legal evidence of debt. It is…
Indirect Labor Definition
Indirect Labor Definition: The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced directly to particular products.
Advantages and Disadvantages of Standard Costing and Variance Analysis
Advantages and Disadvantages of Standard Costing and Variance Analysis Learning Objective of the article: What are the advantages / benefits and disadvantages / problems / limitations of standard costing system…
Cost Terms, Concepts, and Classifications
Cost Terms, Concepts, and Classifications: After Studying this chapter you should be able to: Identify and give examples of each of the three basic manufacturing cost categories. Distinguish between product…
Advantages and Disadvantages of Joint Venture
Advantages and Disadvantages of Joint Venture Learning Objectives: What are the advantages and disadvantages of joint ventures? Smart entrepreneurs and business owners know that Joint Ventures are the fastest and…
Cost Structure Definition
Cost Structure Definition: Cost structure is the relative proportion of fixed, variable, and mixed costs found within an organization.
Advantages and Disadvantages of Absorption Costing System
Advantages and Disadvantages of Absorption Costing System Learning Objectives: What are the advantages and disadvantages of using absorption or full costing method? Advantages of Absorption Costing: It recognizes the importance…
Independent Variable Definition
Independent Variable Definition: An independent variable is a variable that acts as a causal factor; activity is the independent variable, as represented by the letter X in the following equation:…
Administrative Cost Definition
Administrative Cost Definition Administrative costs are all executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling.
Adjustments for Departures from the Costing Method Used–Inventory Valuation
Adjustments for Departures from the Costing Method Used--Inventory Valuation The problem of year end inventory valuation is primarily a question of the materials cost consumed in products manufactured and sold…