Absorbed Cost Explained
Jennifer edwards
Absorbed cost in a business can be defined as the indirect cost related to the manufacturing of products of the business. In order to understand absorbed cost let take an…
Cost terms concepts and classifications
Opportunity Cost
Robert
Opportunity cost is a concept used for evaluation of alternative uses of resources. Decision makers select that alternative use of resources from which they expect the maximum net return. Opportunity…
Fixed Cost and Variable Cost
This classification is based on cost behaviour. It is one of the most useful classifications f.r the purpose of cost planning and control. Cost behaviour means how a cost will…
Period Cost or Non manufacturig Cost
Cost which is not related to production and is matched against revenues on a time period basis is called period cost, non manufacturing cost or non-inventoriable cost. Period cost includes…
Product Cost or Manufacturing Cost
Product cost –includes costs incurred– for manufacturing or for purchasing goods. In case of manufacturing business product cost consists of direct materials, direct labour and factory overhead. In case of…
Product Cost VS Period Cost
Sana Ahmed
Product Cost Versus Period Cost: Learning Objectives of this article: Define and explain the terms “product cost” and “period cost”. Give examples of each. What is the difference between product…
Workplace Spirituality Definition
Sidra Farid
Workplace Spirituality Definition: The recognition that people have an inner life that nourishes is nourished by meaningful work that takes place in the context of community.
Turnover Definition
Turnover Definition: Turnover is the amount of sales generated in an investment center for each dollar invested in operating assets. It is computed by dividing sales by the average operating…
Transfer Pricing Definition
Transfer Pricing Definition: The price charged when one division or segment provides goods or services to another division or segment of an organization.
Trend Analysis Definition
Trend Analysis Definition: Trend analysis is a side-by-side comparison of two or more years’ financial statements.
Cost Classifications for Predicting Cost Behavior (Variable and Fixed Cost)
Cost Classifications for Predicting Cost Behavior (Variable and Fixed Cost): Learning objectives of this article: Define and explain variable cost and fixed cost. Give examples of variable and fixed costs.…
Trade Discount Definition
Trade Discount Definition: Trade discount is an allowance or rebate from the scheduled price granted by the seller to buyer. In other words, Trade discount is an allowance made from…
Traceable Fixed Cost Definition
Traceable Fixed Cost Definition: Traceable fixed cost is a fixed cost that is incurred because of the existence of a particular business segment.
Uses of Quality Cost Information (Report)
Uses of Quality Cost Information (Report): Learning Objectives of this article: What are the advantages and limitations of a quality cost report? A quality cost report has several uses. First…
Total Factory Cost Definition
Total Factory Cost Definition: Total factory cost is equal to total direct materials cost plus direct labor cost plus Factory overhead. Formula of prime cost can be written as: Prime…
Top Managers Definition
Top Managers Definition: Managers at or near the top level of the organization who are responsible for making organization-wide decisions and establishing the goal and plans that effect the entire…
Time Ticket Definition
Time Ticket Definition: Time ticket is a detailed source document that is used to record an employee’s hour-by-hour activities during a day.
Time-Adjusted Rate of Return Definition
Time-Adjusted Rate of Return Definition: This term is synonymous with internal rate of return.