Management Accounting
Job Costing is a process of accumulation of production costs that is attributed to the different units of products or groups of units of products. For example if a customer orders for a customized set of furniture the set of furniture will be accounted
A step fixed cost is a type of cost that is not altered along with the certain threshold of high and low activity within the business and is altered only when the thresholds are breached or crossed. When the threshold is breached due to
Cost structure is a structure that refers to the types and proportion of different costs present in a business accounting systems. The main objective to design a cost structure is to define the prices of the products, by product. This concept can be more
Capitalization limit can be defined as the dollar amount that a business paid for an asset. The asset for which capital is paid by the business is recorded as the long term asset. However if the business pays less than the capitalization limit of
A capital lease is a kind of lease in which the lessee records the assets to be leased in the same way as it owns the assets that are going to be leased. In this concept the lessor is going to be tagged as
Conservatism principle is an accounting principle that helps accountants in verifying the coming expenses, losses, profits and revenues. According to this principle accountants must use an approach where they must recognize their expenses and liabilities as soon as possible but record revenues and profits
The full time equivalent is referred to the hours worked by a certain employee within a business on full time biases. There is a general calculation of full time equivalent that is approximately equals to 2,080 hours per year. The calculation for full time
A discount allowed is an accounting term where the seller grants a discount in payment to the seller. This kind of discount can be the early payment discount that is granted by the seller to the buyer on credit sales. There may be other
Although there are a number of different types of financial statements but the most important of all those are the income statement, the balance sheet and the statement of cash flows. All these statements are designed and prepared for different purposes. The income statement
Other comprehensive income is those expenses, revenues, profits and losses that are excluded from the net income of the business on the income statement of that accounting period. The concept of other comprehensive income is accepted by GAAP and international financial reporting standards of
According to the accounting terminology income summary account is a transitional account in which all the expenses and revenue accounts of the income statement are transferred at the end of the accounting period. The net amount of expense or revenue that is shifted to
Limit Pricing is a monopolistic pricing strategy in which the competitor sets the price of the product so low and at such a level that deter the other potential entrants from entering the market and competing with the competitor. It may not be necessary
This is a kind of pricing strategy in which you add all the costs that are involved in manufacturing and obtaining an end product and add a markup to the total cost price of the product in order to achieve the final price of
Dynamic pricing is a pricing strategy in which different price is charged from different customers that means the price is altered for different customers. The alteration of the price depends upon the customer willingness to pay for the same product and the service. There
Final Accounts is a term that is used in the basic bookkeeping procedures and is referred to the final trail balance of the accounts at the end of a certain accounting period. This is the final trail balance that is used to design and
In accounting the term work in process means the goods that are under the process of completion but are not completed yet. The work in process goods are somewhere in between the raw materials and finished goods of the inventory. In terms of classification
The working ratio is a financial figure that shows either a business has an ability to cover its ongoing operating expenses within a given accounting period. Working ratio like many other financial ratios indicates the financial health of the business however it mostly yields
Stake Holder value is an accounting concept that is based on the idea of creating maximum returns for all the stake holders involved in a business. The concept of stake holder value is different than that of share holder value where all the efforts