Need for Depreciation
Sidra Farid Need for Depreciation: Learning Objectives: Why does the need for calculating and charging depreciation arise. The Need for depreciation arises for the following reasons: Ascertainment of True Profit or Loss:…
Nature of Accounts and Rules of Debit and Credit
Nature of Accounts and Rules of Debit and Credit: Definition and Explanation: The term "account (a/c)" is a record in summarized and classified form of all business transactions that take…
Avoidable Cost Definition
Avoidable Cost Definition: Any cost that can be eliminated (in whole or in part) by choosing one alternative over another in a decision-making situation. In managerial accounting, this term is…
Average Costing Method Versus FIFO Costing Method
Average Costing Method Versus FIFO Costing Method: Learning Objectives of this Article: What is the difference between average costing method and FIFO costing method when they are used in process…
Average Unit Cost Method–Allocating Joint Product Cost
Average Unit Cost Method--Allocating Joint Product Cost: Learning Objectives: Explain the use of average unit cost method in joint product cost allocation. Average unit cost method attempts to apportion total…
Average Costing Method–Materials and Inventory Costing
Average Costing Method--Materials and Inventory Costing: Learning Objectives: Define and explain average costing method. Give an example of Average costing method. What are advantages and disadvantages of average costing. Definition…
Average Collection Period Ratio: Definition
Average Collection Period Ratio: Definition: The Debtors/Receivable Turnover ratio when calculated in terms of days is known as Average Collection Period or Debtors Collection Period Ratio. The average collection period…
Assumptions of Cost-Volume-Profit (CVP) Analysis
Assumptions of Cost-Volume-Profit (CVP) Analysis: Learning Objectives: What are underlying assumptions of cost volume profit (CVP) analysis? A number of assumptions underlie cost-volume-profit (CVP) analysis: These cost volume profit analysis…
Appraisal Cost Definition
Appraisal Cost Definition: Costs that are incurred to identify defective products before the products are shipped to customers.
Annuity Method of Depreciation
Annuity Method of Depreciation: Learning Objectives: What is annuity method of depreciation? Where is it adopted? According to this method, the purchase of the asset concerned is considered an investment…
Allocation Base Definition
Allocation Base Definition Allocation base is a measure of activity such as direct labour-hours or machine-hours that is used to assign costs to cost objects.
American Institute of Certified Public Accountants (AICPA) Cost or Market Rules–Inventory Valuation
American Institute of Certified Public Accountants (AICPA) Cost or Market Rules--Inventory Valuation The American Institute of Certified Public Accountants (AICPA) moved away from the traditional cost or market, whichever is…
After Tax Cost definition
After Tax Cost definition The amount of net cash outflow resulting from a tax-deductible cash expense after income tax effects have been considered. After tax cost of debt The amount…
After-Tax Benefit Definition
After-Tax Benefit Definition The amount of net cash inflow realized from a taxable cash receipt after income tax effects have been considered. The amount is determined by multiplying the taxable…
Advertise Your Business at Accountingformanagement.com
Advertise Your Business at Accountingformanagement.com The cost for your 728×90 image or text ad at the top of the page is $600 per month. The cost for your 160x600…
Advantages of Variable or Direct or Marginal Costing System
Advantages of Variable or Direct or Marginal Costing System Learning Objectives: What are the advantages of variable costing system? Why absorption costing continues to be used almost exclusively for external…
Advantages of Ledger
Advantages of Ledger Learning Objectives: What are the main advantages of ledger? The following are the advantages derived from ledger: It is the ledger through which successful application of double…
Advantages of Bills of Exchange
Learning Objective: What are the main advantages of bills of exchange? The following are the advantages of a bill of exchanges: It is a legal evidence of debt. It is…