Quality Management Definition
Sidra Farid Quality Management Definition: Quality management is a philosophy of management that is driven by continual improvement and responding to customer needs and expectations.
Quality Costs – Types , Analysis and Prevention
Cost of Quality : Learning objective of this article: Identify the four types of quality costs and explain how they interact (Classification). Categories of quality cost. Prevention appraisal failure model…
Quality Costs Definition
Quality Costs Definition: Costs that are incurred to prevent defective products from falling into the hands of customers or that are incurred as a result of defective units. There are…
Quality Circles Definition
Quality Circles Definition Small groups of employees that meet on a regular basis to discuss ways of improving quality.
Quality Cost Report Definition
Quality Cost Report Definition: A report that details appraisal cost, prevention cost, internal failure cost, and external failure cost. Click here to read a detailed article about quality cost report.
System Normal Costing Definition
Normal Costing System Definition: Normal Costing system is a costing system in which overhead costs are applied to jobs by multiplying a predetermined overhead rate by the actual amount of…
Valuation and Treatment of Normal and Abnormal Loss in Consignment Accounting
Valuation and Treatment of Normal and Abnormal Loss in Consignment Accounting: Learning Objectives: How are the normal and abnormal losses are calculated and treated in consignment accounting? Normal Loss: Normal…
Non-value-added activity Definition
Non-value-added activity Definition: An activity that consumes resources or takes time but that does not add value for which customers are willing to pay.
Net Present Value (NPV) Method Versus Internal Rate of Return (IRR) Method
Net Present Value (NPV) Method Versus Internal Rate of Return (IRR) Method Learning Objectives: What is the difference between net present value (NPV) method and internal rate of return (IRR)…
Net Present Value Method – Comparing Competing Investment Projects
Net Present Value Method (NPV) Comparing Competing Investment Projects Learning Objectives: Compare the competing investment projects using net present value (NPV) method. Our examples on net present value (NPV) method page…
The Use of Net Present Value(NPV) Method in Capital Budgeting Decisions – Discounted Cash Flows
The Use of Net Present Value(NPV) Method in Capital Budgeting Decisions - Discounted Cash Flows: Learning Objectives: Define and explain the net present value method. Evaluate the acceptability of an…
Net Present Value Definition
Net Present Value Definition: Net Present Value is the difference between the present value of the cash inflows and the present value of the cash outflows associated with an investment…
Net Operating Income Definition
Net Operating Income Definition: Income before interest and income taxes have been deducted.
Negotiated Transfer Pricing
Negotiated Transfer Pricing: Definition and Explanation of negotiated transfer pricing: A negotiated transfer pricing results from discussions between the selling and buying divisions. Negotiated transfer prices have many important advantages.…
Negotiated Transfer Price Definition
Negotiated Transfer Price Definition: Negotiated transfer price is a transfer price agreed on between buying and selling division.
Positive and Negative Operating Leverage Definition
Positive and Negative Operating Leverage Definition: Positive Operating Leverage: When fixed cost has a greater portion in the total cost structure of the firm / company, a small percentage increase…
Negative Financial Leverage Definition
Negative Financial Leverage Definition: Negative financial leverage is a situation in which the fixed return to a company's creditors and preferred stockholders is greater than the return on total assets.…
Need for Materials Control
Need for Materials Control: One of the first step in the installation of cost and management accounting system is planning the proper control of materials and supplies from the time…