Management Accounting
Business Process Definition: Business process is a series of steps that are followed in order to carry out some task in a business. Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download
Cost Accounting Definition: Different authorities have defined the term “cost accounting” which help in reflecting the multi-sided meaning the subject contains. The definition given by J. W. Neuner is considered more satisfactory and concise which is as following: “Cost accounting is an expanded phase
Depreciation, Depletion and Amortization: Learning Objectives: What is the difference among depreciation, depletion, and amortization. Depreciation: The term depreciation is used with reference to tangible fixed assets because the permanent continuing and gradual fall in book value is possible only in the case of
Gross Profit Analysis Based on the Previous Year’s Figures: As the basis for illustrating the gross profit analysis using the previous year’s figures, the following gross profit section of a company’s operating statements for 19A and 19B are presented. 19A 19B Changes Sales (net)
Correcting Invoices: When the purchases order, receiving report, and invoice are compared, various adjustments may be needed as a result of the circumstances described below: Some of the materials ordered are not received and are not entered on the invoice. In this case no
Depletion Method of Depreciation: Learning Objectives: What is depletion method of depreciation? Explain with example. Depletion method of depreciation is especially suited to mines, quarries, sand pits, etc. According to it the cost of the asset is divided by the total workable deposits. In
Bureaucracy (in Management) Definition: A form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.
Accounting Principles and Accounting Equation Definition and Explanation: Accounting is the language of business. Affairs of a business unit are made understood to others as well as to those who own or manage it through accounting information which has to be suitably recorded, classified,
Conversion into Double Entry System: Learning Objectives: Define and explain conversion method. How trading and profit and loss account and balance sheet is prepared under conversion method. Conversion of books from single entry system to double entry system is possible either with retrospective (i.e.,
Dependent Variable Definition: A variable that reacts or responds to some causal factor; total cost is the dependent variable, as represented by the letter Y, in the equation: Y = a + bX.
Denominator Activity definition: The activity figure used to compute the predetermined overhead rate.
Delivery Cycle Time Definition: The amount of time required from receipt of an order from a customer to shipment of the completed goods.
Conversion Cost Definition: Conversion cost is equal to direct labor cost plus manufacturing overhead cost. In equation form: Conversion Cost = Direct Labor Cost + Manufacturing Overhead Cost
Gross Profit (GP) Analysis Case Study: Gross Profit analysis of time sharing computer programs: The senior system analysis of Tyrene, Inc. Bob Canedy, developed in his spare time three unique packages of computer programs: Package 1, inventory control; Package 2, sales analysis; Package 3;
Degree of Operating Leverage Definition: A measure, at a given level of sales, of how a percentage change in sales volume will affect profits. The degree of operating leverage is computed by dividing contribution margin by net income.
Methods of Controlling and Improving the Rate of Return on Investment (ROI): Return on investment is normally used to judge the managerial performance in an investment center. Managers therefore try to control and improve the ROI of their investment center. Here we shall discuss
Definition and Explanation of Cash Book: Learning Objectives: Define and explain cash book. How a cash book is balanced. Prepare a format of the simple cash book. Cash book is a book of original entry in which transactions relating only to cash receipts and
Accounting for Non-Trading Concerns Definition and Explanation of Non-trading Concerns: Individuals or institutions with activities other than trade are known as non-trading concerns. Examples of non-trading concerns are clubs, hospitals, libraries, colleges, athletic clubs etc. These institutions are started not for carrying on a
