Vertical Integration Definition
Sana Ahmed Vertical Integration Definition: The involvement by a company in more than one of the steps from production of basic raw materials to the manufacture and distribution of a finished product.
Vertical Analysis and Common Size Statements
Vertical Analysis and Common Size Statements: Definition and Explanation of Vertical Analysis and Common Size Statements: Vertical analysis is the procedure of preparing and presenting common size statements. Common size…
Vertical Analysis Definition
Vertical Analysis Definition: Vertical analysis presentation of a company's financial statements in common-size form is called vertical analysis.
Standard Costing and Variance Analysis Formulas
Standard Costing and Variance Analysis Formulas: Learning Objective of the article: Learn the formulas to calculate direct materials, direct labor and factory overhead variances.(Formula of Variance ) This is a collection…
Variance Definition
Variance Definition: The difference between standard prices and quantities on the one hand and actual prices and quantities on the other hand.
Variance Analysis and Management By Exception
Variance Analysis and Management By Exception: Variance analysis and performance reports are important elements of management by exception. Simply put, management by exception means that the manager's attention should be…
Variable Spending Variance Definition
Variable Spending Variance Definition: The difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred based on the actual activity…
Variable Overhead Efficiency Variance Definition
Variable Overhead Efficiency Variance Definition: The difference between the actual activity (direct labor-hours, machine-hours, or some other base) of a period and the standard activity allowed, multiplied by the variable…
Variable/Direct/Marginal and Absorption Costing Discussion Questions and Answers
Variable/Direct/Marginal and Absorption CostingDiscussion Questions and Answers: Questions: Differentiate between direct costs and direct costing. See answer. Distinguish between period costs and product costs. See answer. Why does the direct…
Limitations of Variable Costing – GAAP and External Reports
Limitations of Variable Costing - GAAP and External Reports: Learning Objectives: What are the limitations of variable costing? Is variable costing acceptable for external reports? Do financial statements prepared under…
Variable Costing Definition
Variable Costing Definition: A costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Variable costing is also called marginal costing and…
Variable Costing and Theory of Constraints (TOC)
Variable Costing and Theory of Constraints (TOC): The Theory of Constraints (TOC) focuses on managing constraints in a company as the key to improving profits. Companies involved in Theory of…
Variable Cost Definition
Variable Cost Definition: Variable cost is a cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.
Cost Classifications for Predicting Cost Behavior (Variable and Fixed Cost)
Cost Classifications for Predicting Cost Behavior (Variable and Fixed Cost): Learning objectives of this article: Define and explain variable cost and fixed cost. Give examples of variable and fixed costs.…
Absorption costing vs Variable costing
Absorption costing vs Variable costing: Learning Objectives: Define and explain variable and absorption costing. Explain the difference between variable and absorption costing and calculate unit product cost under each method.…
Variable Costing System
Variable Costing System A Decision Making Tool for Management: After studying this chapter you should be able to: Explain how variable costing differs from absorption costing and compute unit product…
Value Chain Definition
Value Chain Definition: The major business functions that add value to a company's products and services. These functions consist of research and development, product design, manufacturing, marketing, distribution, and customer…
Valuation of Unsold Stock Or Closing Stock in Consignment Accounting
Valuation of Unsold Stock Or Closing Stock in Consignment Accounting: Learning Objectives: How is the closing stock or unsold stock laying with the consignee valued?. The valuation of stock laying…