Product Flow in Process Costing System
Sana Ahmed Product Flow in Process Costing System: A product can flow through a factory in numerous ways. Three product flow formats associated with process costing - sequential, parallel, and selective -…
Product Level Activities Definition
Product Level Activities Definition: Activities that relate to specific products that must be carried out regardless of how many units are produced and sold or batches run.
Process Costing System – Case Study
Rubab Ali Process Costing System - Case Study: Case A. Accounting for Spoiled Units: The House Hold Aids Company assembles clip clothespins in three sections, and uses process costing. Under normal operating…
Profitability Index Definition
Profitability Index Definition: Profitability index is the ratio of the present value of a project's cash inflows to the investment required.
Process Costing System
Process Costing System Addition of Materials, Average and FIFO Costing After studying this chapter you should be able to: In numerous industries, all materials needed for the product are put…
Promissory Note
Promissory Note: Learning Objectives: Define and explain promissory note. Definition and Explanation: There is another method of payment similar to bill of exchange i.e., promissory note. In this method, in…
Process Costing System
Process Costing System: After studying this chapter you should be able to: Define and explain process costing. Explain the uses of process costing system. Explain the advantages and disadvantages of…
Procedures for Materials, Labor, and Factory Overhead Costs Accumulations
Procedures for Materials, Labor, and Factory Overhead Costs Accumulations: In process costing, materials, labor, and factory overhead costs are accumulated in the usual accounts, using normal cost accounting procedures. Costs…
Principles of Management Definition
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…
Pricing Products and Services
Pricing Products and Services: After studying this chapter you should be able to: Compute the profit maximizing price of a product and service using the price elasticity of demand and…
Segment Reporting and Profitability Analysis – Segmented Income Statements
Shamsa Rafique Segment Reporting and Profitability Analysis-Segmented Income Statements: Learning Objectives: What is segment reporting managerial accounting ? How are segmented income statements prepared? A different kind of income statement is required…
Inventory Turnover Ratio or Stock Turnover Ratio (ITR)
Inventory Turnover Ratio or Stock Turnover Ratio (ITR) : Every firm has to maintain a certain level of inventory or stock of finished goods so as to be able to…
Stock Control
Stock Control: Definition and Explanation: The materials purchased by a concern may be classified as stock items which are taken into store and held until required, or as direct deliveries…
Step Variable Cost Definition
Step Variable Cost Definition: A cost (such as the cost of a maintenance worker) that is obtainable only in large chunks and that increases and decreases only in response to…
Step Method Definition
Step Method Definition: The allocation of a service department's costs to other service departments, as well as to operating departments, in a sequential manner. The sequence starts with the service…
Step Method of Cost Allocation
Step Method of Cost Allocation: Definition: Step method is the method of allocating service department's costs to other service departments, as well as to operating departments, in a sequential manner.…
Statistical Process Control Definition
Statistical Process Control Definition: A charting technique used to monitor the quality of work being done in a workstation for the purpose of immediately correcting any problem.
Purchase of Supplies, Services, and Repairs
Sidra Farid Purchase of Supplies, Services, and Repairs: Learning Objective of the article: Explain the procedure of Purchasing supplies, services and repairs. The procedure followed in purchasing productive materials should apply to…