Managerial Accounting
Managerial Accounting is defined as the measuring, analyzing the business transactions for organizations goal. Managerial accounting helps the manager to take decision within the organization. Managerial accounting is the combination of both financial and non-financial decisions making information’s to managers.
Process Reengineering Definition: An approach to improvement that involves completely redesigning business processes in order to eliminate unnecessary steps, reduce errors, and reduce costs. Click here to read full article about business process reengineering
Process Costing System Definition: Process costing system is a costing system used in those manufacturing situations where a single, homogeneous product (such as cement or flour) is produced for long periods of time.
Product Level Activities Definition: Activities that relate to specific products that must be carried out regardless of how many units are produced and sold or batches run.
Profitability Index Definition: Profitability index is the ratio of the present value of a project’s cash inflows to the investment required.
Principles of Management Definition: Principles of management are fundamental rules of management that could be taught in schools and applied in all organizational situations. Fayol’s 14 Principles of Management: Division of work: Specialization increases output by making employees more efficient. Authority: Managers must be
Cash Discount Definition: It is an allowance or deduction allowance by a creditors to a debtor. In other words, cash discount is an allowance made by the supplier or creditor when the purchaser pays his account at once or within the period of credit
Prime Cost Definition: Prime cost is equal to total direct materials cost plus direct labor cost. Formula of prime cost can be written as: Prime cost = Direct materials + Direct labor Relevant terms: Conversion cost Total factory cost
Prevention Cost Definition: Prevention costs are those costs that are incurred to keep defects from occurring.
Strong Culture Definition: Organizations in which the key values are intensely held and widely shared.
Prevention Cost Definition: Prevention costs are those costs that are incurred to keep defects from occurring.
Sub-optimization Definition: An overall level of profitability that is less than a segment or a company is capable of earning.
Preference Decision Definition: Preference decision is a decision as to which of several competing acceptable investment proposals is best.
Sunk Cost Definition: Sunk cost is any cost that has already been incurred and that cannot be changed by any decision made now or in the future.
Symbolic View of Management Definition: The view that managers have only a limited effect on substantive organizational outcomes because of the large number of factors outside their control.
System Definition: System is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole. System may be a closed system or an open system.
Predetermined Overhead Rate Definition: Predetermined overhead rate is a rate used to charge overhead cost to jobs in production; the rate is established in advance for each period by use of estimates of total manufacturing overhead cost and of the total allocation base for
Practical Standards Definition: Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.
Postaudit Definition: The follow-up after a project has been approved and implemented to determine whether expected results are actually realized.