Committed Fixed Cost Definition
Abida Rehman Committed Fixed Cost Definition: Committed fixed costs are those fixed costs that are difficult to adjust and that relate to the investment in facilities, equipment, and the basic organizational structure…
First in First Out – FIFO Method Definition
Sana Ahmed 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…
Feedback Definition
Feedback Definition: Accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that might otherwise go unnoticed.
External Failure Cost Definition
External Failure Cost Definition: Costs that are incurred when a product or service that is defective is delivered to a customer.
External Environment Definition
External Environment Definition: Outside institutions or forces that potentially affect an organization's performance.
Equivalent Units of Production Definition
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
Environmental Uncertainty Definition: The degree of change and degree of complexity in an organization's environment.
Environmental Complexity Definition
Environmental Complexity Definition: The number of components in an organization's environment and the extent of the organization's knowledge about those components.
Entrepreneurship Definition
Entrepreneurship Definition: The process whereby an individual or group of individuals uses organized efforts to pursue opportunities to create value and grow by fulfilling wants and needs through innovation and…
Engineering Approach Definition
Engineering Approach Definition: A detailed analysis of cost behavior based on an industrial engineer's evaluation of the inputs that are required to carry out a particular activity and of the…
Ending Finished Goods Inventory Budget Definition
Ending Finished Goods Inventory Budget Definition: A budget showing the dollar amount of cost expected to appear on the balance sheet for unsold units at the end of a period.…
Effectiveness Definition
Effectiveness Definition: Completing activities so that organizational goals are attained; "referred to as doing the right things."
Economic value added (EVA) Definition
Economic value added (EVA) Definition: Economic value added is a concept similar to residual income.
History of Managerial Accounting
Robert History of Managerial Accounting: Managerial accounting has its roots in the industrial revolution of the 19th century. During this early period, most firms were tightly controlled by a few owner-managers who…
Need for Managerial Accounting Information
Need for Managerial Accounting Information: Learning objectives of this article: What is the need of managerial accounting in organizations and business firms? Every organization - large and small-has managers. Someone must be…
What is Managerial Accounting
What is Managerial Accounting: Learning objectives of this article: What is managerial accounting? What are functions of managerial accounting? Managerial accounting is concerned with providing information to managers that is, people…
Introduction to Managerial Accounting
Introduction to Managerial Accounting: After studying this chapter you should be able to: Identify the major differences and similarities between financial and managerial accounting. Understand the role of management accountants in an…