Budget Committee Definition
Shamsa Rafique Budget Committee Definition: A group of key management persons who are responsible for overall policy matters relating to the budget program and for coordinating the preparation of the budget.
Cost Flow and Journal Entries–Process Costing System
Sana Ahmed Cost Flow and Journal Entries--Process Costing System: Materials: Materials are drawn from the storeroom using a material requisition form. Materials can be added in any department, although it is not…
Flexible Budget Definition
Flexible Budget Definition: A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to…
Contribution Margin Definition
Abida Rehman Contribution Margin Definition: Contribution margin is the amount remaining from sales revenues after all variable expenses have been deducted. Contribution Margin = Sales Revenue – Variable Cost Click here to…
Flexible Budget Definition
Flexible Budget Definition: A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to…
Fixed Overhead Efficiency Variance
Fixed Overhead Efficiency Variance: Learning Objective of the article: Define and explain fixed overhead efficiency variance. How is fixed overhead efficiency variance calculated? What are the reasons / causes of…
Contribution Approach Definition
Contribution Approach Definition: Contribution approach is an income statement format that is geared to cost behavior in that costs are separated into variable and fixed categories rather than being separated…
Budget Committee
Budget Committee: Learning Objective of the Article: What is a budget committee? What are the functions and responsibilities of a budget committee? Definition: Budget committee is a group of key…
Price Earnings Ratio (PE Ratio)
Robert Price Earnings Ratio (PE Ratio): Definition: Price earnings ratio (P/E ratio) is the ratio between market price per equity share and earning per share. The ratio is calculated to make an estimate of appreciation…
Continuous or Perpetual Budget Definition
Continuous or Perpetual Budget Definition: A 12-month budget that rolls forward one month as the current month is completed.
Contingency Approach Definition
Contingency Approach Definition: An approach that says that organizations are different face different situations (contingencies) and require different ways of managing.
Gross Profit Ratio (GP Ratio)
Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a percentage. It expresses the relationship between gross profit and sales. Components: The basic components for the calculation of gross profit ratio are gross profit and net sales.Net sales means that sales minus…
Fixed Manufacturing Overhead Cost Deferred in Inventory Definition
Fixed Manufacturing Overhead Cost Deferred in Inventory Definition: The portion of the fixed manufacturing overhead cost of a period that goes into inventory under the absorption costing method as a…
Fixed Manufacturing Overhead Cost Released From Inventory Definition
Fixed Manufacturing Overhead Cost Released From Inventory Definition: The portion of the fixed manufacturing overhead cost of a prior period that becomes an expense of the current period under the…
Break Even Point Definition
Break Even Point Definition: Break even point is defined as the level of sales at which profit is zero. The break-even point can also be defined as the point where…
Constraint Definition
Constraint Definition: A constraint is anything that prevents an organization or individual from getting more of what it wants. Or a limitation under which a company must operate, such as…
Consignment Accounting Questions and Answers
Consignment Accounting Questions and Answers: Learning Objectives: Answer the various general questions about consignment accounting. Theoretical Questions: Distinguish between a sales and consignment. Click here to see answer. What is…
Consignment Accounting Exercises and Problems
Consignment Accounting problems and exercises: Learning Objectives: Prepare journal entries, consignment account and consignee account in the books of consignor. Prepare journal entries and consignor account in the books of…