Depreciation Methods
Rubab Ali Depreciation Methods: Learning Objectives: What are the various methods for depreciation? Fixed assets differ from each other in their nature so widely that the same depreciation methods cannot be applied…
Cost Classifications on Financial Statements
Abida Rehman Cost Classifications on Financial Statements: Learning Objectives of this Article: Prepare a schedule of cost of goods manufactured. Prepare income statement including a schedule of cost of goods sold. Merchandising…
Depreciation Fund Method or Sinking Fund Method of Depreciation
Depreciation Fund Method or Sinking Fund Method of Depreciation: Learning Objectives: What is depreciation fund method or sinking fund method of depreciation? What are its advantages and disadvantages? Definition and…
By Products and Joint Products
Shamsa Rafique By Products and Joint Products: After studying this chapter you should be able to: Many industrial concerns are confronted with the difficult and often rather complicated problem of assigning costs…
Gross Profit Analysis Solved Problems
Sana Ahmed Gross Profit Analysis Solved Problems: Learning Objective: Calculate sales price variance, sales volume variance, cost price variance, cost volume variance, sales mix variance, and final sales volume variance. Problem 1:…
Cost Center Definition
Cost Center Definition: A business segment whose manager has control over cost but has no control over revenue or the use of investment funds.
By-Products and Main Products
By-Products and Main Products: Learning Objectives: Define and explain By-Products. Definition and Explanation of By Products: The term "by product" is generally used to denote one or more products of…
Gross Profit Analysis-Questions and Answers
Gross Profit Analysis-Questions and Answers: Questions: Why is the gross profit figure significant? What causes changes in the gross profit? Explain "product mix" or "sales mix." By what methods can…
Cost Behavior Definition
Cost Behavior Definition: Cost behavior is the way in which a cost reacts or responds to changes in the level of business activity.
Financial Statement Analysis
Sidra Farid Financial Statement Analysis Learning Objectives: Prepare and interpret financial statements in comparative and common-size form. Compute and interpret financial ratios that would be most useful to a common stock holder.…
Business Process Definition
Business Process Definition: Business process is a series of steps that are followed in order to carry out some task in a business.
Cost Accounting Definition
Cost Accounting Definition: Different authorities have defined the term "cost accounting" which help in reflecting the multi-sided meaning the subject contains. The definition given by J. W. Neuner is considered…
Depreciation, Depletion and Amortization
Depreciation, Depletion and Amortization: Learning Objectives: What is the difference among depreciation, depletion, and amortization. Depreciation: The term depreciation is used with reference to tangible fixed assets because the permanent…
Gross Profit Analysis Based on the Previous Year’s Figures
Gross Profit Analysis Based on the Previous Year's Figures: As the basis for illustrating the gross profit analysis using the previous year's figures, the following gross profit section of a…
Correcting Invoices
Correcting Invoices: When the purchases order, receiving report, and invoice are compared, various adjustments may be needed as a result of the circumstances described below: Some of the materials ordered…
Depletion Method of Depreciation
Depletion Method of Depreciation: Learning Objectives: What is depletion method of depreciation? Explain with example. Depletion method of depreciation is especially suited to mines, quarries, sand pits, etc. According to…
Bureaucracy (in Management) Definition
Bureaucracy (in Management) Definition: A form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
Accounting Principles and Accounting Equation
Accounting Principles and Accounting Equation Definition and Explanation: Accounting is the language of business. Affairs of a business unit are made understood to others as well as to those who…