Uses of Quality Cost Information (Report)
Sana Ahmed Uses of Quality Cost Information (Report): Learning Objectives of this article: What are the advantages and limitations of a quality cost report? A quality cost report has several uses. First…
Managerial Usefulness/Importance of Variance Analysis
Managerial Usefulness/Importance of Variance Analysis: Learning Objectives: Explain the importance of variance analysis for management in decision making process. Costs of production are effected by internal factors over which management…
Internal Rate of Return (IRR) Method in Capital Budgeting Decisions
Internal Rate of Return (IRR) Method in Capital Budgeting Decisions: Learning Objectives: Define and explain the internal rate of return (IRR) in Accounting. Evaluate the acceptability of an investment project…
Use of Information Technology in Job Order Costing System
Use of Information Technology in Job Order Costing System: Learning objectives of the articles: What are advantages of using bar code technology in job order costing system. Bar code technology…
Universality of Management Definition
Universality of Management Definition: Universality of management means the reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational areas, and…
Unit-Level Activities Definition
Unit-Level Activities Definition: Activities that arise as a result of the total volume of goods and services that are produced, and that are performed each time a unit is produced.
Over-applied and Underapplied Overhead
Over-applied and Underapplied Overhead Learning objectives of this article: Define, explain and calculate under-applied and over-applied overhead rate. Give an example. Definition and Explanation of Over and Underapplied Overhead: Since…
Under-Applied Overhead Definition
Under-Applied Overhead Definition: A debit balance in the Manufacturing Overhead account that arises when the amount of overhead cost actually incurred is greater than the amount of overhead cost applied…
Capital Budgeting Decisions With Uncertain Cash Flows
Capital Budgeting Decisions With Uncertain Cash Flows: Learning Objectives: Evaluate an investment project that has uncertain cash flows. The analysis in this chapter (capital budgeting decisions) has assumed that all…
Factory Overhead Yield Variance
Factory Overhead Yield Variance: Learning Objective of the article: Define and explain overhead yield variance. Calculate overhead yield variance when three variance and two variance approaches are used. Formula of…
Variable Overhead Efficiency Variance
Variable Overhead Efficiency Variance: Learning Objective of the article: Define and explain variable overhead efficiency variance. How is variable overhead efficiency variance calculated? What are the reasons / causes of…
Manufacturing Overhead Cost Standards
Manufacturing Overhead Cost Standards: Learning Objective of the article: How manufacturing overhead standards are set? Procedures for establishing and using standard factory overhead rates are similar to the methods of…
Manufacturing Overhead Budget
Manufacturing Overhead Budget: Learning Objective of the article: Define and explain manufacturing overhead budget. Prepare a manufacturing overhead budget. The manufacturing overhead budget provides a schedule for all costs of…
Overhead Application Definition
Overhead Application Definition: The process of charging manufacturing overhead cost to job cost sheets and to the Work in Process account.
Over-applied Overhead Definition
Over-applied Overhead Definition: Over-applied overhead is a credit balance in the Manufacturing Overhead account that arises when the amount of overhead cost applied to Work in Process is greater than…
Overall or Net Factory Overhead Variance
Overall or Net Factory Overhead Variance: Definition: Overall or net factory overhead variance is the difference between actually incurred factory overhead and expenses charged into process using the standard factory…
Over trading and Under Trading
Over-trading and under-trading are facets of over and under-capitalization. Over trading is a curse to the business. Over Trading : A company which is under-capitalized will try to do too…
Over-capitalization and Under-capitalization
Over-capitalization and Under-capitalization: The total amount of funds available to an undertaking should be neither too much nor too low. An important question, therefore is the question of capitalization of…