Activity Definition
Sidra Farid Activity Definition An event that causes the consumption of overhead resources in an organization.
Business and Quality Improvement Programs
Shamsa Rafique After studying this article you should be able to understand the basic concepts underlying: Just in time (JIT) manufacturing system. Total quality management (TQM). Business process reengineering (BPR). Theory of…
Cost of Goods Manufactured COGM and Sold Statement Formulas
Abida Rehman COGM Formula: COGM Formula : Prime Cost = Direct Materials Cost + Direct Labor Cost Total Factory Cost or Manufacturing Cost = Direct Materials + Direct Labor Cost +…
Activity Cost Pool Definition
Activity Cost Pool Definition A "bucket" in which costs are accumulated that relate to a single activity in the activity-based costing system.
Activity-Based Management (ABM) Definition
Activity-Based Management (ABM) Definition Activity based management is a management approach that focuses on managing activities as a way of eliminating waste and reducing delays and defects.
Definitions of Important Terms Used in Consignment Accounting
Definitions of Important Terms Used in Consignment Accounting: Learning Objectives: Define the most important terms used in consignment account. Commission: The term commission as used in connection with consignment denotes…
Cost of Goods Manufactured Definition
Cost of Goods Manufactured Definition: Cost of goods manufactured is the manufacturing costs associated with the goods that were finished during the period.
Activity Based Costing – GAAP and External Reports
Activity Based Costing - GAAP and External Reports Since activity based costing (ABC) system generally provides more accurate product costs than traditional costing methods, why isn't it used for external…
Activity Based Costing Example / Problem / Format
Activity Based Costing Example / Problem / Format Learning Objectives: Perform the first stage allocation of overhead costs to the activity cost pools. Compute activity rates for the activity cost…
Importance of Contribution Margin – Advantages of Cost Volume Profit (CVP) Analysis
Importance of Contribution Margin - Advantages of Cost Volume Profit (CVP) Analysis: Learning Objectives: What is the importance of contribution margin? What are the advantages of cost volume profit (CVP)…
Human Skills Definition
Sana Ahmed Human Skills Definition: Human skills involve the ability to work well with other people both individually and in group. Because managers deal directly with people, this skill is crucial! Managers…
Designing and Implementing Activity Based Costing (ABC) System
Designing and Implementing Activity Based Costing (ABC) System: Experts agree on several essential characteristics of any successful implementation of activity based costing system. First, the initiative to implement activity based…
Activity-based costing (ABC) Definition
Activity-based costing (ABC) Definition A costing method based on activities that is designed to provide managers with cost information for strategic and other decisions that potentially affect capacity and therefore…
Factory Overhead Idle Capacity Variance
Factory Overhead Idle Capacity Variance: Learning Objective of the article: Define and explain factory overhead idle capacity variance. How is FOH idle capacity variance calculated? What are the reasons of…
Activity Based Costing (ABC) System and Top Management
Activity Based Costing (ABC) System and Top Management Learning Objectives: Understand the importance of the support of top management in the implementation of activity based costing system. Experts agree on…
Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System
Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System: Learning Objectives: Why net operating income figure under variable costing and absorption costing systems are almost…
Human Factors in Budgeting
Human Factors in Budgeting: The success of a budget program also depends on: The degree to which top management accepts the budget program as a vital part of the company's…
Ideal Standards Definition
Ideal Standards Definition: Standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times.