Interdepartmental Services Definition
Shamsa Rafique Interdepartmental Services Definition: Services provided between service departments. Also see Reciprocal services
Job Order Costing – The Flow of Cost
Sana Ahmed Job Order Costing - The Flow of Cost: Learning objective of this article: Understand the flow of costs in a job order costing system and prepare appropriate journal entries to…
Curvilinear Costs Definition
Abida Rehman Curvilinear Costs Definition: A relationship between cost and activity that is a curve rather than a straight line.
Advantages of Ledger
Sidra Farid Advantages of Ledger Learning Objectives: What are the main advantages of ledger? The following are the advantages derived from ledger: It is the ledger through which successful application of double…
Insurance Policy Method of Depreciation
Insurance Policy Method of Depreciation: Learning Objectives: Define and explain the insurance policy method of depreciation. Definition and Explanation: Insurance policy method is a slight modification of the depreciation fund…
Job Order Costing System Exercises and Problems
Exercise 1-- Cost accumulation Procedure Determination Exercise 2-- Job order cost sheet Exercise 3-- Job order costing-T Accounts and Journal Entries Exercise 4-- Job Order Cycle Entries Exercise 5-- Journal…
Current Ratio
Current Ratio: It is a measure of general liquidity and is most widely used to make the analysis for short term financial position or liquidity of a firm. It is…
Current Assets to Proprietor’s Fund Ratio
Current Assets to Proprietor's Fund Ratio: Current Assets to Proprietors' Fund Ratio establishes the relationship between current assets and shareholder's funds. The purpose of this ratio is to calculate the…
Cross-Subsidization Definition
Cross-Subsidization Definition: Improper assignment of costs among a company's segments; also called cost distortion.
Informational Roles Definition
Informational Roles Definition: Managerial roles that involve receiving, collecting, and disseminating information. The three informational roles include monitor, disseminator, and spokesperson. Relevant Terms: Interpersonal Roles Decisional Roles
Criticism/Disadvantages or Limitations of Return on Investment (ROI) Method of Performance Evaluation
Criticism/Disadvantages or Limitations of Return on Investment (ROI) Method of Performance Evaluation: Learning Objectives: What are the limitations of return on investment method of performance evaluation? Although the return on…
Creditors / Accounts Payable Turnover Ratio
Creditors / Accounts Payable Turnover Ratio: Definition and Explanation: Credit turnover ratio is similar to the debtors turnover ratio. It compares creditors with the total credit purchases. It signifies the credit…
Inflation and Capital Budgeting Analysis
Inflation and Capital Budgeting Analysis: Learning Objectives: Does inflation impact capital budgeting analysis? Explain. Doesn't inflation have an impact in a capital budgeting analysis? The answer is qualified yes in…
Job Order Costing System-Case Study
Job Order Costing System-Case Study: Case A: Job Order Costing; General and Factory Ledger Case B: Determination of Cost Case C: Improving a Cost Information and Accumulation System Case D:…
Costing By Departments
Costing By Departments: The nature of manufacturing operations in firms using process or job order cost procedures is usually such that work on product takes place in several departments. With…
Industrial Revolution Definition
Industrial Revolution Definition: The advent of machine power, mass production, and efficient transportation.
Advantages and Disadvantages of Job Order Costing System
Advantages and Disadvantages of Job Order Costing System: Learning objectives of the article: What are the advantages and disadvantages of job order costing system? One of the primary advantages of…
Costing By Departments
Costing By Departments: The nature of manufacturing operations in firms using process or job order cost procedures is usually such that work on product takes place in several departments. With…