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Marginal Costing Definition: Marginal Costing is a costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Marginal costing is also called…
Margin of Safety (MOS): Learning Objectives: Define and explain margin of safety. Calculate margin of safety ratio. What is its significance/importance? Contents: Definition of Margin of Safety (MOS) Formula of…
Margin Definition: Margin can be defined as net operating income divided by sales. Margin = Net operating income / Sales Sales include all cash as well as credit sales. Example:…
Manufacturing Overhead Definition: Manufacturing overhead costs are all costs associated with manufacturing except direct materials and direct labor.
Manufacturing Overhead Budget Definition: Manufacturing overhead budget is a detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time…
Manufacturing Cycle Efficiency (MCE) Definition: Manufacturing cycle efficiency (MCE) is the Process (value-added) time as a percentage of throughput time. OR Quotient of the time required for value-added production divided…
Manufacturing Cost Definition: Manufacturing cost is equal to total direct materials cost plus direct labor cost plus Factory overhead. It is also called total factory cost. Formula of prime cost…
Cost Classification as Manufacturing and Non-manufacturing: Learning objectives of this article: Define and explain manufacturing and non-manufacturing costs. What is the difference between manufacturing and non-manufacturing costs costs? Identify and…
Cost Classification as Manufacturing and Non-manufacturing: Learning objectives of this article: Define and explain manufacturing and non-manufacturing costs. What is the difference between manufacturing and non-manufacturing costs costs? Identify and…
Managerial/Management/Cost Accounting Formulas: Cost of Goods Manufactured, Sold, and Income Statement Formulas Cost Volume Profit (CVP) Formulas
Managerial or Management or Cost Accounting Terms and Definitions: Following are the most important managerial or management or cost accounting terms. These terms are alphabetically arranged. This arrangement makes easy…
Managerial (Management) Accounting Definition: The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making. Click here to read more…
Manager Definition: Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals. OR One who handles, controls, or directs, especially: One…
Management Definition: Coordinating work activities so that they are completed efficiently and effectively with and through other people. Relevant Terms: Manager First Line Managers Middle Managers Top Level Managers
Management By Exception Definition: Management by exception is a system of management in which standards are set for various operating activities, with actual results then compared to these standards. Any…
Make or Buy Decision Definition: Make or buy decision is a decision as to whether an item should be produced internally or purchased from an outside supplier. Explanation of the…
Issuing and Costing Materials into Production: To control the quantity and cost of materials, supplies, and services requires a systematic and efficient system of purchasing, recording, and storing. Equally necessary…
ISO 9000 Standards Definition: Quality control requirements issued by the International Standard Organization that relate to products sold in European countries.
Shamsa Rafique