Cost Accounting
Cost accounting is a branch of accounting which deals with cost incurred at the time of production as well as the cost of depreciation of fixed assets. Cost accounting helps in decision making of the company. Cost accounting is also helpful in budgeting management of company.
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 down for stock taking.” So perpetual inventory system implies continuous maintenance of stock records
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 until ending inventories, determined by physical count, are subtracted from the sum of opening
Performance Report Definition: Performance report is the detailed report comparing budgeted data to actual data.
Out-of-Pocket Costs Definition: Out of Pocket Cost is actual cash outlays for salaries, advertising, repairs, and similar costs.
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. This page only defines the term click here for detailed study about production budget.
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.
Participative Budget Definition: A method of preparing budgets in which managers prepare their own budgets. These budgets are then reviewed by the manager’s supervisor, and any issues are resolved by mutual agreement. See Self-imposed budget.
Organizational Culture Definition: Organizational culture system of shared meaning and beliefs held by organizational members that determines, in large degree, how employees act.
Organizational Behavior Definition: Organizational behavior is the field of study concerned with the actions (behavior) of people at work.
Organization Sustaining Activities Definition: Organizational sustaining activities are those activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.
Organization Definition: An organization is a deliberate arrangement of people to accomplish some specific purpose. Each organization has three characteristics; first, each organization has a distinct purpose. This purpose is usually expressed in terms of a goal or a set of goals that organization
Organizational Chart Definition: Organizational Chart is a visual diagram of a firm’s organizational structure that depicts formal lines of reporting, communication, and responsibility between managers.
Organizational Chart Definition: Organizational Chart is a visual diagram of a firm’s organizational structure that depicts formal lines of reporting, communication, and responsibility between managers.
Optional Straight Line Method Definition: A method of computing depreciation deductions under MACRS that can be used instead of the MACRS tables.
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.
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 net income. This page only defines the term click here to read full article
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.
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. Merchandise Purchase Budget Formula or Equation: Merchandise to be purchased = Budgeted units to