Conversion into Double Entry System
Abida Rehman Conversion into Double Entry System: Learning Objectives: Define and explain conversion method. How trading and profit and loss account and balance sheet is prepared under conversion method. Conversion of books…
Dependent Variable Definition
Rubab Ali Dependent Variable Definition: A variable that reacts or responds to some causal factor; total cost is the dependent variable, as represented by the letter Y, in the equation: Y =…
Denominator Activity definition
Denominator Activity definition: The activity figure used to compute the predetermined overhead rate.
Delivery Cycle Time Definition
Delivery Cycle Time Definition: The amount of time required from receipt of an order from a customer to shipment of the completed goods.
Conversion Cost Definition
Conversion Cost Definition: Conversion cost is equal to direct labor cost plus manufacturing overhead cost. In equation form: Conversion Cost = Direct Labor Cost + Manufacturing Overhead Cost
Gross Profit (GP) Analysis Case Study
Sana Ahmed Gross Profit (GP) Analysis Case Study: Gross Profit analysis of time sharing computer programs: The senior system analysis of Tyrene, Inc. Bob Canedy, developed in his spare time three unique…
Degree of Operating Leverage Definition
Degree of Operating Leverage Definition: A measure, at a given level of sales, of how a percentage change in sales volume will affect profits. The degree of operating…
Methods of Controlling and Improving the Rate of Return on Investment (ROI)
Methods of Controlling and Improving the Rate of Return on Investment (ROI): Return on investment is normally used to judge the managerial performance in an investment center. Managers therefore try…
Definition and Explanation of Cash Book
Definition and Explanation of Cash Book: Learning Objectives: Define and explain cash book. How a cash book is balanced. Prepare a format of the simple cash book. Cash book is…
Accounting for Non-Trading Concerns
Sidra Farid Accounting for Non-Trading Concerns Definition and Explanation of Non-trading Concerns: Individuals or institutions with activities other than trade are known as non-trading concerns. Examples of non-trading concerns are clubs, hospitals,…
Gross Profit Analysis Based on Budgets and Standard Costs
Gross Profit Analysis Based on Budgets and Standard Costs: As the basis for illustrating the analysis of gross profit using budgets and standard costs, three financial statements for a company…
Accounting For Ventures / Joint Venture Accounts
Accounting For Ventures / Joint Venture Accounts Learning Objectives: Define and explain the terms consignment, consignor and consignee. What is the difference between consignment and sale? Make journal entries in…
Definition and Explanation of Bookkeeping
Definition and Explanation of Bookkeeping: Learning Objectives: Define and explain the term bookkeeping. The work book or books mean books of accounts and keeping implies maintaining in proper form and…
Generally Accepted Accounting Principles (GAAP)
Generally Accepted Accounting Principles (GAAP): Generally accepted accounting principles (GAAP) are those principles that have substantial authoritative support. The AICPA's code of professional conduct requires that members prepare financial statements…
Definition and Explanation of Ledger
Definition and Explanation of Ledger: Learning Objectives: Define and explain the term "ledger" What are the features or characteristics of ledger? When all the transactions of a given period have…
Controlling Definition
Controlling Definition: Ensuring that the plan is actually carried out and is appropriately modified as circumstances change.
Controlling and Costing Materials – Questions and Answers
Controlling and Costing Materials - Questions and Answers: Questions: List the forms more frequently used in the procurement and use of materials. Should formal purchase requisitions and purchase orders be…
General Environment Definition
General Environment Definition: Broad external conditions that may affect the organization.