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First In First Out (FIFO) - Materials and Inventory Costing Method: Learning Objectives: Define and explain FIFO method. Give an example of FIFO costing method What are advantages and disadvantages…
First in First Out-FIFO Method Definition: A method that operates under the assumption that the materials which are received first are issued first and, therefore, the flow of cost should…
Closed System Definition: Closed system is a system that is not influenced by or do not interact with its environment.
Bottleneck Definition: A machine or process that limits total output because it is operating at capacity.
Definition and Explanation of Single Entry System: Learning Objectives: Define and explain single entry system of bookkeeping. What are limitations of single entry system of accounting It is difficult to…
External Failure Cost Definition: Costs that are incurred when a product or service that is defective is delivered to a customer.
External Environment Definition: Outside institutions or forces that potentially affect an organization's performance.
Definition, Explanation and Examples of Joint Venture: Learning Objectives: Define and explain the terms joint venture. What the advantages or benefits of joint venture. Definition: A joint venture is a…
Definition, Explanation and Characteristics of "Depreciation" or "Accounting Depreciation": Learning Objectives: Define and explain the terms "depreciation" or "accounting depreciation". The value of assets gradually reduces on account of use.…
Cash Flow Statement Definition: Cash flow statement is a financial statement that highlights the major activities that directly and indirectly impact cash flows and hence affect the overall cash balance.
Consignment, Consignor and Consignee Learning Objectives: Define and explain the terms consignment, consignor and consignee. The word meaning consignment in accounting can be generally defined as the act of sending…
Equivalent Units of Production Definition: The product of the number of partially completed units and their percentage of completion with respect to a particular cost. Equivalent units are the number…
Environmental Uncertainty Definition: The degree of change and degree of complexity in an organization's environment.
Definition and explanation of cash flow statement. The purpose of the statement of cash flows is to highlight the major activities that directly and indirectly impact cash flows and…
Bill of materials Definition: Bill of materials is a document that shows the type and quantity of each major item of materials required to make a product.
Absorption Costing Definition: Cash equivalents are short-term, highly liquid investments such as treasury bills, commercial paper, and money market funds that are made solely for the purpose of generating a…
Environmental Complexity Definition: The number of components in an organization's environment and the extent of the organization's knowledge about those components.
Definition and Explanation of Bill of Exchange: A bill of exchange has been defined as an unconditional order in writing addressed by one person to another; signed by the person…
Sana Ahmed 
Abida Rehman 
Shamsa Rafique 
Rubab Ali