Variable Spending Variance Definition
Sana Ahmed Variable Spending Variance Definition: The difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred based on the actual activity…
Variable Overhead Efficiency Variance Definition
Variable Overhead Efficiency Variance Definition: The difference between the actual activity (direct labor-hours, machine-hours, or some other base) of a period and the standard activity allowed, multiplied by the variable…
Positive Financial Leverage Definition
Rubab Ali Positive Financial Leverage Definition: Positive financial leverage is a situation in which the fixed return to a company's creditors and preferred stockholders is less than the return on total assets.…
Standard Cost Per Unit Definition
Shamsa Rafique Standard Cost Per Unit Definition: The standard cost of a unit of product as shown on the standard cost card; it is computed by multiplying the standard quantity or hours…
Variable Costing Definition
Variable Costing Definition: A costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Variable costing is also called marginal costing and…
Plant Wide Overhead Rate Definition
Plant Wide Overhead Rate Definition: Plant wide overhead rate is a single predetermined overhead rate that is used throughout a plant.
Variable Cost Definition
Variable Cost Definition: Variable cost is a cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.
Planning Definition
Planning Definition: Selecting a course of action and specifying how the action will be implemented.
Retainer Fee Approach Definition
Abida Rehman Retainer Fee Approach Definition: A method of allocating service department costs in which other departments are charged a flat amount each period regardless of usage of the service involved.
Standard Cost Method Definition
Standard Cost Method Definition: Standard Cost Method method charges issued materials at a predetermined or estimated price reflecting a normal or an expected future price. The difference between the actual…
Responsibility Center Definition
Responsibility Center Definition: Any business segment whose manager has control over cost, revenue, or the use of investment funds.
Planning and Control Cycle Definition
Planning and Control Cycle Definition: The flow of management activities through planning, directing and motivating, and controlling, and then back to planning again.
Standard Cost Card Definition
Standard Cost Card Definition: Standard cost card is a detailed listing of the standard amounts of materials, labor, and overhead that should go into a unit of product, multiplied by…
Responsibility Accounting Definition
Responsibility Accounting Definition: A system of accountability in which managers are held responsible for those items of revenue and cost - and only those items - over which the manager…
Staff Definition
Staff Definition: A position in an organization that is only indirectly related to the achievement of the organization's basic objectives. Such positions are supportive in nature in that they provide…
Residual Income Definition
Residual Income Definition: The net operating income that an investment center earns above the required return on its operating assets.
Profit Center Definition
Profit Center Definition: A business segment whose manager has control over cost and revenue but has no control over the use of investment funds.
Required Rate of Return Definition
Required Rate of Return Definition: The minimum rate of return that an investment project must yield to be acceptable.