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General Questions and Answers about Process Costing System: Questions: What is the primary objective in process costing? See answer Job order and process costing procedures are used by different types…
Business Process Reengineering (BPR): Learning objective of the articles: Define and explain the concept of business process reengineering (BPR) What are the advantages and disadvantages of business process reengineering? Definition…
Process Reengineering Definition: An approach to improvement that involves completely redesigning business processes in order to eliminate unnecessary steps, reduce errors, and reduce costs. Click here to read full article…
Product Cost Versus Period Cost: Learning Objectives of this article: Define and explain the terms "product cost" and "period cost". Give examples of each. What is the difference between product…
Product Flow in Process Costing System: A product can flow through a factory in numerous ways. Three product flow formats associated with process costing - sequential, parallel, and selective -…
Product Level Activities Definition: Activities that relate to specific products that must be carried out regardless of how many units are produced and sold or batches run.
Profitability Index Definition: Profitability index is the ratio of the present value of a project's cash inflows to the investment required.
Promissory Note: Learning Objectives: Define and explain promissory note. Definition and Explanation: There is another method of payment similar to bill of exchange i.e., promissory note. In this method, in…
Learning Objectives: Define and explain the terms "profit planning" and "budgeting". What is the difference between planning and control? What are the advantages and disadvantages of budgeting? Contents: Definition and…
Purchases Returns Book: Definition and Explanation: Purchases returns book is a book in which the goods returned to suppliers are recorded. It is also called returns outward book or purchases…
Prevention Cost Definition: Prevention costs are those costs that are incurred to keep defects from occurring.
Inventory Purchases Budget for a Merchandising Firm: Learning Objectives: Define and explain an inventory budget. Prepare an inventory budget or merchandising purchase budget. Manufacturing firms prepare production budget but merchandising…
Materials Purchasing Forms: The principle forms required in purchasing are the purchase requisition form and the purchase order form. Purchase Requisition Form: The purchase requisition originates with (1) stores or…
Zero Based Budgeting (ZBB) Definition: A method of budgeting in which managers are required to justify all costs as if the programs involved were being proposed for the first time.…
Zero Based Budgeting (ZBB): Learning Objective of the article: Define and explain the term "zero based budgeting" and "incremental budgeting" in managerial accounting. Explain the importance and use of zero…
Yield Definition: A term synonymous with internal rate of return and time-adjusted rate of return.
Volume Variance Definition: The variance that arises whenever the standard hours allowed for the output of a period are different from the denominator activity level that was used to compute…
Factory Overhead Volume Variance: Learning Objective of the article: Define and explain factory overhead volume variance. How is FOH volume variance calculated? Contents: Definition Formula Example Definition: Factory overhead volume…
Sana Ahmed