Industrial Revolution Definition
Shamsa Rafique Industrial Revolution Definition: The advent of machine power, mass production, and efficient transportation.
Indirect Method of Cash Flow Definition
Indirect Method of Cash Flow 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…
Indirect Cost Definition
Indirect Cost Definition: Indirect cost is a cost that cannot be easily and conveniently traced to the particular cost object under consideration.
Indirect Materials Definition
Indirect Materials Definition: Small items of material such as glue and nails. These items may become an integral part of a finished product but are traceable to the product only…
Indirect Labor Definition
Indirect Labor Definition: The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced directly to particular products.
Independent Variable Definition
Independent Variable Definition: An independent variable is a variable that acts as a causal factor; activity is the independent variable, as represented by the letter X in the following equation:…
Incremental Cost Definition
Incremental Cost Definition: Incremental cost is defined as an increase in cost between two alternatives. Also see Differential cost.
Incremental Analysis Definition
Incremental Analysis Definition: Incremental analysis is an analytical approach that focuses only on those items of revenue, cost, and volume that will change as a result of a decision. Y…
Income Tax and Capital Budgeting Decisions
Income Tax and Capital Budgeting Decisions: Learning Objectives: Include income taxes in a capital budgeting analysis. In our discussion of capital budgeting decisions in this chapter, we ignored income taxes…
Income Statement Definition
Income Statement Definition: Income statement is the summary of a management's performance as reflected in the profitability (or lack of it) of a firm over a certain period. It itemizes…
Income Comparison of Variable and Absorption Costing
Income Comparison of Variable and Absorption Costing: Learning Objectives: Prepare income statements using variable costing and absorption costing. Why net operating income usually different under variable and absorption costing methods?…
Income and Expenditure Account
Income and Expenditure Account: Learning Objectives: Define and explain income and expenditure account. What is the purpose of preparing income and expenditure account? Example and format of Income and expenditure account…
Business and Quality Improvement Programs
After studying this article you should be able to understand the basic concepts underlying: Just in time (JIT) manufacturing system. Total quality management (TQM). Business process reengineering (BPR). Theory of…
Definitions of Important Terms Used in Consignment Accounting
Definitions of Important Terms Used in Consignment Accounting: Learning Objectives: Define the most important terms used in consignment account. Commission: The term commission as used in connection with consignment denotes…
Importance of Contribution Margin – Advantages of Cost Volume Profit (CVP) Analysis
Importance of Contribution Margin - Advantages of Cost Volume Profit (CVP) Analysis: Learning Objectives: What is the importance of contribution margin? What are the advantages of cost volume profit (CVP)…
Designing and Implementing Activity Based Costing (ABC) System
Designing and Implementing Activity Based Costing (ABC) System: Experts agree on several essential characteristics of any successful implementation of activity based costing system. First, the initiative to implement activity based…
Factory Overhead Idle Capacity Variance
Factory Overhead Idle Capacity Variance: Learning Objective of the article: Define and explain factory overhead idle capacity variance. How is FOH idle capacity variance calculated? What are the reasons of…
Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System
Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System: Learning Objectives: Why net operating income figure under variable costing and absorption costing systems are almost…