Uncategorized
Uncategorized means improper arrangement, classification of objects. Uncategorized also describes that topic is without category. Uncategorized is also like unsorted, undefined etc.
Sometimes the management may decide to incur certain changes within the business operations that may result in a change in the cash flow of the entire business. This change may result in an increment in the cash flow of the business. The result of
It is the method of paying for a purchase in the form of installments. These installments may be spanned over days, weeks, months or even years. This method of revenue recognition shows that the seller has allowed the buyer to pay the sale price
Financial leverage is the type of debt that a business entity or a firm utilizes to purchase more assets in order to run business operations. A business entity utilizes financial leverage in the case when it is hesitant to invest equity capital into business
Activity based management can be defined as a method where all the activities within in a business are identified and evaluated using the costing method called activity based costing. In other words activity based management is a method through which administration finds out how
Turnover Rate is a kind of ratio that helps in evaluating the degree of employee involvement within a business. The turnover rate shows the number of employees that are leaving the company or they are replaced by the company itself. In most of the
The net present value of budgeting used the concept of the time value of the money and evaluates the project for the investment on the bases of cash flows, total project costs and service value of the project. The net present value method of
The break even is the point that tells a firm how much merchandise or services they need to sell so that they can cover their entire costs. A breakeven point is the point where there is no loss and no profit but the firm
An intangible asset of a business can be defined as an asset that do not exist physically like other assets but have equal importance in profitable performance of a business. An example of intangible asset can be a list of potential customers bought from
Principle of revenue recognition is also included in general accounting principles with other common principles. This is one of the basic principles of accrual accounting. According to this principle the revenue is comprehend for a certain period of time whether the cash regarding this
Unearned revenue can be defined as the cash piles that are generated due to several business transactions however is are not actually earned by the business. For example advance payments of the services and products that are promised to the customers by the business
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Multiple Predetermined Overhead Rates Definition: A costing system in which there are multiple overhead cost pools with a different predetermined rate for each cost pool, rather than a single predetermined overhead rate for the entire company. Frequently, each production department is treated as a
Manufacturing Cost Definition: Manufacturing cost is equal to total direct materials cost plus direct labor cost plus Factory overhead. It is also called total factory cost. Formula of prime cost can be written as: Prime cost = Direct materials + Direct labor Relevant terms:
Least Cost Decisions: Revenues are not directly involved in some decisions. For example, a company that does not charge for delivery service may need to replace an old delivery truck, or a company may be trying to decide whether to lease or to buy
Managerial (Management) Accounting Definition: The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making. Click here to read more about managerial/management accounting
Joint Product Cost Analysis for Managerial Decisions and Profitability Analysis: Learning Objectives: What is the importance of joint product cost analysis for management. The Securities and Exchange Commission requires that annual reports to stock holders include data by lines of business. Likewise, the Federal
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 that inflation does have an impact on the numbers that are used in capital
An integrated set of performance measures that is derived from and supports the organization’s strategy.