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Return on Investment (ROI) and Balanced Scorecard: Simply exhorting managers to increase return on investment (ROI) is not sufficient. Managers who are told to increase return on investment (ROI) will…
In real sense, ordinary shareholders are the real owners of the company. They assume the highest risk in the company. (Preference share holders have a preference over ordinary shareholders in…
Return on Capital Employed Ratio (ROCE Ratio): The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence, the return on capital employed…
Return on Shareholders Investment or Net Worth Ratio: Definition: It is the ratio of net profit to share holder's investment. It is the relationship between net profit (after interest and…
Retiring of a Bill of Exchange: Learning Objectives: Make journal entries in the books of drawer and drawee when a bill of exchange is retired before it maturity. Definition and…
Retainer Fee Approach Definition: A method of allocating service department costs in which other departments are charged a flat amount each period regardless of usage of the service involved.
Responsibility Center Definition: Any business segment whose manager has control over cost, revenue, or the use of investment funds.
Responsibility Accounting Definition: A system of accountability in which managers are held responsible for those items of revenue and cost - and only those items - over which the manager…
Residual Income-A Method to Measure Managerial Performance: Definition and explanation of residual income method: Residual income is the net operating income that an investment center earns above the minimum required…
Residual Income Definition: The net operating income that an investment center earns above the required return on its operating assets.
Requirements of a System of Materials Control: The important requirements or essentials of adequate satisfactory system of materials control are as follows: Proper Coordination Competent Purchasing Agent Use of Standard…
Required Rate of Return Definition: The minimum rate of return that an investment project must yield to be acceptable.
Replacement Cost Method Definition: Replacement cost is the cost at which, on the date of issue of the material, there could be purchased another lot of material identical to that…
Learning Objectives: Define and explain replacement cost method. What is the use of replacement cost method while cost by-products? Replacement cost method ordinarily is applied by firms whose by-products are…
Re-order Level or Ordering Point or Ordering Level: Definition and explanation of re-order point Formula of re-order level or ordering point Examples Definition and explanation: This is that level of…
Renewal of a Bill of Exchange: Learning Objectives: Make journal entries in the books of drawer and acceptor when the original bill is cancelled and a new bill is drawn…
Relevant Cost Definition: A cost that differs between alternatives in a particular decision. In managerial accounting, this term is synonymous with avoidable cost and differential cost.
Relevant Range Definition: The range of activity within which assumptions about variable and fixed cost behavior are valid.
Abida Rehman