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Relaxing (Elevating) the Constraint Definition: An action that increases the capacity of a bottleneck. As a result constraint give some relaxation and productivity or provision of services to customers are…
Regression Line Definition: A line fitted to an array of plotted points. The slope of the line, denoted by the letter b in the linear equation Y = a +…
Recording Cost of Goods Manufactured and Sold in Job Order Costing: Cost of Goods Manufactured (COGM): When a job has been completed, the finished out put is transferred from the…
Recording Transactions of Bill of Exchange: For the purpose of accounting, bills are classified under two heads: Bills receivable Bills payable Bills Receivable: A bill of exchange is treated as…
Recording Non-manufacturing Costs in a Job Order Costing System: In addition to manufacturing costs, companies also incur marketing and selling costs. These costs should be treated as period expenses and…
Reconciliation Method Definition: A method of computing the cash provided by operating activities that starts with net income and adjusts it to a cash basis. It is also known as…
Recognition of Net Revenue Method--By Product Costing: This method recognizes the need for assigning some cost to the by-product. It does not attempt, however, to allocate any main product cost…
Recognition of Gross Revenue Method--By Products Costing: This method is typical non-cost procedure in which the final inventory cost of the main product is overstated to the extent that some…
Reciprocal Services Definition: Services provided between service departments. Also see Interdepartmental services.
Reciprocal Method Definition: A method of allocating service department costs that gives full recognition to interdepartmental services.
Definition: Reciprocal method is a method of allocating service department costs to other departments that gives full recognition to interdepartmental services. Explanation: The reciprocal method gives full recognition to interdepartmental…
Receiving Materials: The function of the receiving department is to: unload and unpack incoming materials; check quantities received against the shippers packing list; identify goods received with descriptions on the…
Receipt and Payment Account: Learning Objectives: Define and explain receipt and payment account. Why a receipt and payment account is prepared? Prepare a receipt and payment account. Definition and Explanation:…
Ray H. Garrison: Ray H. Garrison is emeritus professor of accounting at Brigham Young University, Provo, Utah. He received his B.S. and M.S. degrees from Brigham Young University and his…
Return on Investment (ROI) Method for Measuring Managerial Performance: In a truly decentralized company, segment managers are given a great deal of autonomy. Profit and investment centers are virtually independent…
Raw Materials Definition: Materials that are used to make a product. A finished product of a firm can be a raw material for another firm. For example plastic is a…
Ranking Investment Projects - The Preference Decisions: Learning Objectives: Define and explain screening and preference decisions. Rank investment projects in order of preference. When considering investment opportunities, managers must make…
Range of Acceptable Transfer Price Definition: The range of transfer price within which the profits of both the selling division and the buying division would increase as a result of…
Abida Rehman