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Difference Between Gross Margin and Contribution Margin: Learning Objectives: What is the difference between gross margin and contribution margin? Gross Margin is the Gross Profit as a percentage of Net…
ISO 9000 Standards Definition: Quality control requirements issued by the International Standard Organization that relate to products sold in European countries.
Just in Time (JIT) Definition: Just In Time (JIT) is a production and inventory control system in which materials are purchased and units are produced only as needed to meet…
Average Unit Cost Method–Allocating Joint Product Cost: Learning Objectives: Explain the use of average unit cost method in joint product cost allocation. Average unit cost method attempts to apportion total…
Invoicing Goods Higher Than Cost in Consignment: Learning Objectives: What is the accounting treatment when consignor invoices goods higher than the actual cost? Sometimes in place of sending the goods…
Difference Between Depreciation and Fluctuation: Learning Objectives: What is the difference between depreciation and fluctuation?. Depreciation of asset and fluctuation in its market value are not the same. For example,…
Just in Time (JIT) Manufacturing and Inventory Control System: Learning objectives of the article: Define and explain the concept of just in time manufacturing and inventory control system. What are…
Distinction/Difference Between Consignment and Sale: Learning Objectives: What is the distinction/difference between consignment and sale? The following are the main points of the difference between consignment and sale. Transfer of…
Journal Proper: Learning Objectives: Define and explain journal proper. When a journal proper is used? Definition and Explanation: Journal proper is book of original entry (simple journal) in which miscellaneous…
Difference Between Bill of Exchange and Cheque/Check: Learning Objectives: What is the difference between bill of exchange and cheque/check? Check Bill of Exchange It is drawn on a banker It…
Journal: Learning Objectives: Define and explain journal. What are characteristics of journal? What are its advantages and how a journal is prepared? Definition and Explanation: The word “journal” has been…
Average Costing Method–Materials and Inventory Costing: Learning Objectives: Define and explain average costing method. Give an example of Average costing method. What are advantages and disadvantages of average costing. Definition…
Difference Between Capital and Revenue Expenditures: Learning Objectives: What is the difference between capital and revenue expenditures. Following is the difference between capital and revenue expenditures. Capital Expenditures Revenue Expenditures…
Invoice Approval and Data Processing: By the time materials reach the receiving department, the company unusually will have received the invoice from the vendor. This invoice and a copy of…
Average Collection Period Ratio: Definition: The Debtors/Receivable Turnover ratio when calculated in terms of days is known as Average Collection Period or Debtors Collection Period Ratio. The average collection period…
Joint Venture Memorandum Account – An Alternative Method: Learning Objectives: What is a memorandum joint venture account? Prepare a memorandum joint venture account. The is another method to record the…
Investment Center Definition: A business segment whose manager has control over cost and over revenue and that also has control over the use of investment funds.
Assumptions of Cost-Volume-Profit (CVP) Analysis: Learning Objectives: What are underlying assumptions of cost volume profit (CVP) analysis? A number of assumptions underlie cost-volume-profit (CVP) analysis: These cost volume profit analysis…
Abida Rehman
Shamsa Rafique
Sana Ahmed
Sidra Farid