Income Statement Definition
Shamsa Rafique Income Statement Definition: Income statement is the summary of a management's performance as reflected in the profitability (or lack of it) of a firm over a certain period. It itemizes…
Human Skills Definition
Sana Ahmed Human Skills Definition: Human skills involve the ability to work well with other people both individually and in group. Because managers deal directly with people, this skill is crucial! Managers…
Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System
Impact of Just In Time (JIT) Inventory Methods on Variable and Absorption Costing System: Learning Objectives: Why net operating income figure under variable costing and absorption costing systems are almost…
Horizontal/Trend Analysis Definition
Horizontal/Trend Analysis Definition: A side-by-side comparison of two or more years' financial statements. Click here to read full article about horizontal or trend analysis. Relevant terms: Vertical Analysis
High-Low Point Method Definition
High-Low Point Method Definition: A method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low levels of…
Half-Year Convention Definition
Half-Year Convention Definition: A requirement under the Modified Accelerated Cost Recovery System (MACRS) that allows a company to take only a half year's depreciation in the first and last years…
Denominator Activity definition
Rubab Ali Denominator Activity definition: The activity figure used to compute the predetermined overhead rate.
General Environment Definition
General Environment Definition: Broad external conditions that may affect the organization.
Full Costing Definition
Full Costing Definition: Full costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the…
Flexible Budget Definition
Flexible Budget Definition: A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to…
Flexible Budget Definition
Flexible Budget Definition: A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to…
Fixed Manufacturing Overhead Cost Deferred in Inventory Definition
Fixed Manufacturing Overhead Cost Deferred in Inventory Definition: The portion of the fixed manufacturing overhead cost of a period that goes into inventory under the absorption costing method as a…
Fixed Manufacturing Overhead Cost Released From Inventory Definition
Fixed Manufacturing Overhead Cost Released From Inventory Definition: The portion of the fixed manufacturing overhead cost of a prior period that becomes an expense of the current period under the…
Fixed Cost Definition
Fixed Cost Definition: A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a…
First Stage Allocation Definition
First Stage Allocation Definition: The process by which overhead costs are assigned to activity cost pools in an activity-based costing system.
First Line Managers Definition
First Line Managers Definition: Managers at the lowest level of the organization who manage the work of non-managerial employees who are directly involved with the production or creation of the…
Finished Goods Definition
Finished Goods Definition: Units of product that have been completed but have not yet been sold to customers.
Financing Activities Definition
Financing Activities Definition: All transactions (other than payment of interest) involving borrowing from creditors or repaying creditors as well as transactions with the company's owners (except stock dividends and stock…