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Disposition of Underapplied or Overapplied Overhead Balances: Learning objective of the article: How is over and under applied overhead is disposed off. Give an example to explain the procedure? What…
Operations Management Definition: The design, operation, and control of the transformation process that converts resources (labor and raw materials etc.) into finished goods or services.
Operation Costing System or Hybrid Costing System: Learning Objectives of this article: What is operation costing or hybrid costing system. Explain with examples. Definition: Operation costing is a hybrid costing…
Normal Costing System Definition: Normal Costing system is a costing system in which overhead costs are applied to jobs by multiplying a predetermined overhead rate by the actual amount of…
Learning Objectives: Make journal entries when a bill of exchange is dishonoured by the drawee. Definition and Explanation: A bill of exchange is said to be dishonored when the drawee…
Definition: Operating ratio is the ratio of cost of goods sold plus operating expenses to net sales. It is generally expressed in percentage. Operating ratio measures the cost of operations…
Operating Leverage Definition: Operating leverage is a measure of how sensitive net income is to a given percentage change in sales. It is computed by dividing the contribution margin by…
Valuation and Treatment of Normal and Abnormal Loss in Consignment Accounting: Learning Objectives: How are the normal and abnormal losses are calculated and treated in consignment accounting? Normal Loss: Normal…
Definition and Explanation of Operating Leverage: A lever is a tool for multiplying force. Using a lever, a massive object can be moved with only a modest amount of force.…
Discussion Questions and Answers: Learning Objectives: Find answers of the general questions about Fist in First Out and Average Method of process costing system. Questions: How does the FIFO method…
Operating Department Definition: Operating department is a department or similar unit in an organization within which the central purposes of the organization are carried out.
Discretionary Fixed Cost Definition: Discretionary fixed costs are those fixed costs that arise from annual decisions by management to spend in certain fixed cost areas, for example advertising and research.
Discounting a Bill of Exchange: Learning Objectives: Make journal entries in the books of creditor and debtors at the time of discounting of bill of exchange. If the holder of…
Minimum Limit or Minimum Level of Stock: Learning Objective: Definite and explain minimum limit or minimum level of stock. How is minimum limit or minimum level calculated? Definition and Explanation:…
Middle Managers Definition: Middle Managers are managers at the lowest level of the organization who manage the work of non-managerial employees who are directly involved with the production or creation…
Directing and Motivating Definition: Mobilizing employees to carry out plans and run routine operations.
Non-value-added activity Definition: An activity that consumes resources or takes time but that does not add value for which customers are willing to pay.
Merchandise Purchases Budget Definition: Merchandise purchase budget is a budget used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.…
Abida Rehman 
Sana Ahmed 
Sidra Farid 
Shamsa Rafique