Profitability Index Definition
Sana Ahmed Profitability Index Definition: Profitability index is the ratio of the present value of a project's cash inflows to the investment required.
Principles of Management Definition
Rubab Ali Principles of Management Definition: Principles of management are fundamental rules of management that could be taught in schools and applied in all organizational situations. Fayol's 14 Principles of Management: Division…
Cash Discount Definition
Cash Discount Definition: It is an allowance or deduction allowance by a creditors to a debtor. In other words, cash discount is an allowance made by the supplier or creditor…
Prevention Cost Definition
Prevention Cost Definition: Prevention costs are those costs that are incurred to keep defects from occurring.
Preference Decision Definition
Preference Decision Definition: Preference decision is a decision as to which of several competing acceptable investment proposals is best.
Predetermined Overhead Rate Definition
Predetermined Overhead Rate Definition: Predetermined overhead rate is a rate used to charge overhead cost to jobs in production; the rate is established in advance for each period by use…
Practical Standards Definition
Practical Standards Definition: Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.
Postaudit Definition
Postaudit Definition: The follow-up after a project has been approved and implemented to determine whether expected results are actually realized.
Zero Based Budgeting (ZBB) Definition
Zero Based Budgeting (ZBB) Definition: A method of budgeting in which managers are required to justify all costs as if the programs involved were being proposed for the first time.…
Yield Definition
Yield Definition: A term synonymous with internal rate of return and time-adjusted rate of return.
Volume Variance Definition
Volume Variance Definition: The variance that arises whenever the standard hours allowed for the output of a period are different from the denominator activity level that was used to compute…
Vertical Integration Definition
Vertical Integration Definition: The involvement by a company in more than one of the steps from production of basic raw materials to the manufacture and distribution of a finished product.
Vertical Analysis Definition
Vertical Analysis Definition: Vertical analysis presentation of a company's financial statements in common-size form is called vertical analysis.
Variance Definition
Variance Definition: The difference between standard prices and quantities on the one hand and actual prices and quantities on the other hand.
Variable Spending Variance Definition
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
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.…
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…