Responsibility Center Definition
Abida Rehman Responsibility Center Definition: Any business segment whose manager has control over cost, revenue, or the use of investment funds.
Transfer at Cost to the Selling Division
Sidra Farid Transfer at Cost to the Selling Division: Many companies set transfer prices at either the variable cost or full (absorption) cost incurred by the selling division. Although the cost approach…
Planning and Control Cycle Definition
Rubab Ali Planning and Control Cycle Definition: The flow of management activities through planning, directing and motivating, and controlling, and then back to planning again.
Standard Cost Card Definition
Shamsa Rafique Standard Cost Card Definition: Standard cost card is a detailed listing of the standard amounts of materials, labor, and overhead that should go into a unit of product, multiplied by…
Trading Account
Learning Objectives: Define and explain trading account. (What is trading Account ?) What are the items of a trading account. Prepare the format of trading account. What are advantages of…
Responsibility Accounting Definition
Responsibility Accounting Definition: A system of accountability in which managers are held responsible for those items of revenue and cost - and only those items - over which the manager…
Residual Income-A Method to Measure Managerial Performance
Residual Income-A Method to Measure Managerial Performance: Definition and explanation of residual income method: Residual income is the net operating income that an investment center earns above the minimum required…
Staff Definition
Staff Definition: A position in an organization that is only indirectly related to the achievement of the organization's basic objectives. Such positions are supportive in nature in that they provide…
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…
Residual Income Definition
Residual Income Definition: The net operating income that an investment center earns above the required return on its operating assets.
Requirements of a System of Materials Control
Requirements of a System of Materials Control: The important requirements or essentials of adequate satisfactory system of materials control are as follows: Proper Coordination Competent Purchasing Agent Use of Standard…
Profit Center Definition
Profit Center Definition: A business segment whose manager has control over cost and revenue but has no control over the use of investment funds.
Required Rate of Return Definition
Required Rate of Return Definition: The minimum rate of return that an investment project must yield to be acceptable.
Cost Accounting Procedure for Spoiled Goods
Cost Accounting Procedure for Spoiled Goods: Cost accounting should provide product costs and cost control information. In the case of spoilage, the first requirement is to know the nature and…
Replacement Cost Method Definition
Replacement Cost Method Definition: Replacement cost is the cost at which, on the date of issue of the material, there could be purchased another lot of material identical to that…
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.
Split-Off Point Definition
Split-Off Point Definition: That point in the manufacturing process where some or all of the joint products can be recognized as individual products.
Replacement Cost Method – By Product Costing
Learning Objectives: Define and explain replacement cost method. What is the use of replacement cost method while cost by-products? Replacement cost method ordinarily is applied by firms whose by-products are…