Controlling and Costing Materials
Abida Rehman Controlling and Costing Materials: After studying this chapter you should be able to: Effective materials management is essential in order to (1) provide the best service to customers, (2) produce…
Joint Venture Accounting Questions and Answers
Sana Ahmed Joint Venture Accounting Questions and Answers: Learning Objectives: Answers of some important joint venture questions. Theoretical Questions: Define a "joint venture". What are the different methods of recording transactions relating…
Definition and Explanation of Activity Based Costing System
Rubab Ali Definition and Explanation of Activity Based Costing System: Learning Objectives: Understand activity based costing system. How it differs from a traditional costing system? Activity based costing (ABC) is a costing…
Budgeting and Planning
Shamsa Rafique After studying Budgeting and Planning article you should be able to: Understand why organizations budget and the processes they use to create budgets. Prepare a sales budget, including a schedule…
Accounting For Depreciation
Sidra Farid Accounting For Depreciation Learning Objectives: Define and explain the term "depreciation". Why does depreciation calculated and charged? What are the different methods for providing depreciation? Definition and Explanation of Depreciation:…
Budgeted Income Statement
Budgeted Income Statement: Definition and Explanation: A budgeted income statement can be prepared from the data developed in: Sales budget Ending finished goods inventory budget Selling and administrative expense budget…
Controller Definition
Controller Definition: Controller is defined as the manager in charge of the accounting department in an organization.
Future Value and Present Value Tables
Future Value and Present Value Tables Future Value Tables: Table 1: Future Value of $1 Table 2: Future Value of Ordinary Annuity (Annuity in Arrear - End of Period Payments)…
Budgeted Balance Sheet
Budgeted Balance Sheet: Definition and Explanation: The budgeted balance sheet is developed by beginning with the current balance sheet and adjusting it for the data contained in other budgets. Example…
Further Classification of Labor Costs
Further Classification of Labor Costs: Learning Objective of the Article: Properly classify labor costs associated with idle time, overtime and fringe benefits. Idle time, overtime, and fringe benefits associated with…
Factory Overhead Controllable Variance
Factory Overhead Controllable Variance: Learning Objective of the article: Define and explain factory overhead controllable variance. How FOH controllable variance is calculated? What are the reasons / causes of unfavorable…
Budget Variance Definition
Budget Variance Definition: A measure of the difference between the actual fixed overhead costs incurred during the period and budgeted fixed overhead costs as contained in the flexible budget.
Functions of Accounting (accounting functions)
Functions of Accounting (accounting functions): Learning Objectives: What are the important functions of accounting? Record Keeping Function: The primary function of accounting is to keep a systematic record of financial…
Control Definition
Control Definition: Control is the process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.
Full Costing Definition
Full Costing Definition: Full costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the…
Budget Definition
Budget Definition: Budget is a detailed plan for the future, usually expressed in formal quantitative terms.
Contribution Margin (CM) Ratio Definition
Contribution Margin (CM) Ratio Definition: The contribution margin as a percentage of total sales is called contribution margin ratio. Contribution margin ratio = Contribution margin / Sales Click here to…
Form of Ledger and Method of Posting
Form of Ledger and Method of Posting: Form of Ledger: One account usually occupies one page in the ledger. But if the account is big one it may extend to…