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Physical Inventory - Inventory Valuation: Even with a perpetual inventory system, periodic physical counts are necessary to discover and eliminate description between the actual count and the balances on materials…
Overall or Net Factory Overhead Variance: Definition: Overall or net factory overhead variance is the difference between actually incurred factory overhead and expenses charged into process using the standard factory…
Sales Day Book: Definition and Explanation: A sales book is also known as sales day book is a book of original entry in which are recorded the details of credit…
Over-trading and under-trading are facets of over and under-capitalization. Over trading is a curse to the business. Over Trading : A company which is under-capitalized will try to do too…
Perpetual Inventory System Definition: Perpetual inventory system may be defined as a method of recording stores balances after every receipt and issue to facilitate regular checking and to obviate closing…
Sales Budget Definition: Sales budget is a detailed schedule showing the expected sales for coming periods; these sales are typically expressed in both dollars and units.
Over-capitalization and Under-capitalization: The total amount of funds available to an undertaking should be neither too much nor too low. An important question, therefore is the question of capitalization of…
Quantitative or Physical Unit Method--Allocating Joint Product Cost: Learning Objectives: Explain quantitative or physical unit method of joint cost allocation. Quantitative or physical unit method attempts to distribute the…
Periodic Inventory System Definition: Periodic inventory system is that does not require a day-to-day record of inventory changes. Costs of materials used and costs of goods sold cannot be calculated…
Multiple Regression Definition: An analytical method required in those situations where variations in a dependent variable are caused by more than one factor.
Performance Report Definition: Performance report is the detailed report comparing budgeted data to actual data.
Multiple Predetermined Overhead Rates Definition: A costing system in which there are multiple overhead cost pools with a different predetermined rate for each cost pool, rather than a single predetermined…
Out-of-Pocket Costs Definition: Out of Pocket Cost is actual cash outlays for salaries, advertising, repairs, and similar costs.
Multiple Predetermined Overhead Rates: Learning Objectives of the Article: What are multiple predetermined overhead rates? What is the need of calculating multiple predetermined overhead rates? When a single predetermined overhead…
Profit and Loss Account in Statement Form/Income Statement: Trading and profit and loss account/income statement may be prepared either in account form (T form) or in report form (statement form).…
Return on Investment (ROI) Method for Measuring Managerial Performance: In a truly decentralized company, segment managers are given a great deal of autonomy. Profit and investment centers are virtually independent…
Quantitative Approach Definition: The quantitative approach involves the use of quantitative techniques to improve decision making. This approach is also called operations research or management science.
More About Capital and Revenue Expenditures: Capitalized or Deferred Revenue Expenditures: Where a certain revenue expenditure incurred is of such a nature that its benefit is likely to be spread…
Rubab Ali 
Sana Ahmed 
Shamsa Rafique 
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Abida Rehman