Net Operating Income Definition
Sidra Farid Net Operating Income Definition: Income before interest and income taxes have been deducted.
Margin Definition
Shamsa Rafique 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 Definition: Manufacturing overhead costs are all costs associated with manufacturing except direct materials and direct labor.
Negotiated Transfer Price Definition
Negotiated Transfer Price Definition: Negotiated transfer price is a transfer price agreed on between buying and selling division.
Manufacturing Overhead Budget Definition
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…
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…
Manufacturing Cycle Efficiency (MCE) Definition
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…
Managerial or Management or Cost Accounting Terms and Definitions
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…
Learning Organization Definition
Sana Ahmed Learning Organization Definition: Learning organization is an organization that has developed the capacity to continuously learn, adapt, and change.
Differential Revenue Definition
Abida Rehman Differential Revenue Definition: Differential revenue is the difference in revenue between any two alternatives. Example: Revenue from first alternative = $5000; Revenue from second alternative = $4000; Differential revenue =…
Leading Definition
Leading Definition: Management function that involves motivating subordinates, influencing individuals or teams as they work, selecting the most effective communication channels, or dealing in any way with employ behavior issues.
Differential Cost Definition
Differential Cost Definition: Any cost that differs between alternatives in a decision-making situation. In managerial accounting, this term is synonymous with avoidable cost and relevant cost. Also see Incremental cost.…
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.…
Manager Definition
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…
Labor Rate Variance Definition
Labor Rate Variance Definition: A measure of the difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period. Relevant…
Management Definition
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 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…
Labor Efficiency Variance Definition
Labor Efficiency Variance Definition: A measure of the difference between the actual hours taken to complete a task and the standard hours allowed, multiplied by the standard hourly labor rate.…