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.
Contribution Margin (CM) Ratio Definition: The contribution margin as a percentage of total sales is called contribution margin ratio. Contribution margin ratio = Contribution margin / Sales Click here to download Contribution Margin Ratio Notes (Printable) Recommended Books ! Or Download E accounting book
Flexible Budget Definition: A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to compare to actual costs incurred.
Contribution Margin Definition: Contribution margin is the amount remaining from sales revenues after all variable expenses have been deducted. Contribution Margin = Sales Revenue – Variable Cost Click here to read full article about contribution margin
Flexible Budget Definition: A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to compare to actual costs incurred.
Contribution Approach Definition: Contribution approach is an income statement format that is geared to cost behavior in that costs are separated into variable and fixed categories rather than being separated according to the functions of production, sales, and administration.
Continuous or Perpetual Budget Definition: A 12-month budget that rolls forward one month as the current month is completed.
Contingency Approach Definition: An approach that says that organizations are different face different situations (contingencies) and require different ways of managing.
Fixed Manufacturing Overhead Cost Deferred in Inventory Definition: The portion of the fixed manufacturing overhead cost of a period that goes into inventory under the absorption costing method as a result of production exceeding sales. Also see: Fixed manufacturing overhead cost released from inventory
Fixed Manufacturing Overhead Cost Released From Inventory Definition: The portion of the fixed manufacturing overhead cost of a prior period that becomes an expense of the current period under the absorption costing method as a result of sales exceeding production.
Constraint Definition: A constraint is anything that prevents an organization or individual from getting more of what it wants. Or a limitation under which a company must operate, such as limited machine time available or limited raw materials available that restricts the company’s ability
Fixed Cost Definition: A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.
Conceptual Skills Definition: Conceptual Skills are the skills managers must have to think and to conceptualize about abstract and complex situations. Using these skills, managers must be able to see the organization as a whole, understand the relationships among various subunits, and visualize how
First Stage Allocation Definition: The process by which overhead costs are assigned to activity cost pools in an activity-based costing system.
First Line Managers Definition: 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 of the organization’s products.
Finished Goods Definition: Units of product that have been completed but have not yet been sold to customers.
Financing Activities Definition: All transactions (other than payment of interest) involving borrowing from creditors or repaying creditors as well as transactions with the company’s owners (except stock dividends and stock splits). Relevant terms: Cash flow statement Operating activities Investing activities Cash equivalents
Financial Leverage Definition: Acquiring assets with funds that have been obtained from creditors or from preferred stockholders at a fixed rate of return.
Financial Accounting Definition: Financial accounting is the phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization. Relevant Terms: Cost Accounting Managerial/Management Accounting