Raw Materials Definition
Abida Rehman Raw Materials Definition: Materials that are used to make a product. A finished product of a firm can be a raw material for another firm. For example plastic is a…
Production Budget Definition
Rubab Ali Production Budget Definition: Production budget is a detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs.…
Modified Accelerated Cost Recovery System (MACRS) Definition
Shamsa Rafique Modified Accelerated Cost Recovery System (MACRS) Definition: A method of depreciation required for income tax purposes that depends on which of nine property classes an asset belongs.
Ranking Investment Projects – The Preference Decisions
Ranking Investment Projects - The Preference Decisions: Learning Objectives: Define and explain screening and preference decisions. Rank investment projects in order of preference. When considering investment opportunities, managers must make…
Payback Period Definition
Payback Period Definition: Payback period is the length of time that it takes for a project to recover its initial cost out of the cash receipts that it generates.
Mixed Cost or Semi-variable Cost
Mixed Cost or Semi-variable Cost: Learning Objective of this Article: Define and explain mixed or semi-variable cost. Give examples of mixed costs. Analyze mixed cost using high-low point method. Definition…
Payback Period Method for Capital Budgeting Decisions
Payback Period Method for Capital Budgeting Decisions: Learning Objectives of the Article: Define and Explain payback period. Determine the payback period for an investment project. What are the advantages and…
Range of Acceptable Transfer Price Definition
Range of Acceptable Transfer Price Definition: The range of transfer price within which the profits of both the selling division and the buying division would increase as a result of…
Mixed Cost Definition
Mixed Cost Definition: Mixed cost is the cost that contains both variable and fixed cost elements. Relevant Terms: Fixed cost Variable cost
Quality of Conformance Definition
Sidra Farid Quality of Conformance Definition: The degree to which a product or service meets or exceeds its design specifications and is free of defects or other problems that mar its appearance…
Materials Mix and Yield Variance
Materials Mix and Yield Variance: Learning Objective of the article: Define and explain materials mix and yield variances. What are the formulas of materials mix and yield variances? Calculate materials…
Parties Interested in Accounting Information
Parties Interested in Accounting Information: Learning Objectives: Explain, who may be interested in accounting information of a company or firm? Name the parties interested in accounting information and state their…
Quality Management Definition
Quality Management Definition: Quality management is a philosophy of management that is driven by continual improvement and responding to customer needs and expectations.
Quality Costs – Types , Analysis and Prevention
Cost of Quality : Learning objective of this article: Identify the four types of quality costs and explain how they interact (Classification). Categories of quality cost. Prevention appraisal failure model…
Quality Costs Definition
Quality Costs Definition: Costs that are incurred to prevent defective products from falling into the hands of customers or that are incurred as a result of defective units. There are…
Quality Circles Definition
Quality Circles Definition Small groups of employees that meet on a regular basis to discuss ways of improving quality.
Quality Cost Report Definition
Quality Cost Report Definition: A report that details appraisal cost, prevention cost, internal failure cost, and external failure cost. Click here to read a detailed article about quality cost report.
Participative Budgeting or Self Imposed Budgeting
Participative Budgeting or Self Imposed Budgeting: Learning Objective of the article: Define and explain the term "self imposed or participative budgeting" in managerial accounting. Explain the importance and use of…