Sana Archive
Vertical Integration Definition: The involvement by a company in more than one of the steps from production of basic raw materials to the manufacture and distribution of a finished product. Recommended Books ! Or Download E accounting book in MS-word format for just 20
Vertical Analysis and Common Size Statements: Definition and Explanation of Vertical Analysis and Common Size Statements: Vertical analysis is the procedure of preparing and presenting common size statements. Common size statement is one that shows the items appearing on it in percentage form as
Vertical Analysis Definition: Vertical analysis presentation of a company’s financial statements in common-size form is called vertical analysis.
Standard Costing and Variance Analysis Formulas: Learning Objective of the article: Learn the formulas to calculate direct materials, direct labor and factory overhead variances.(Formula of Variance ) This is a collection of variance formulas / equations which can help you calculate variances for direct materials,
Variance Definition: The difference between standard prices and quantities on the one hand and actual prices and quantities on the other hand.
Variance Analysis and Management By Exception: Variance analysis and performance reports are important elements of management by exception. Simply put, management by exception means that the manager’s attention should be directed toward those parts of the organization where plans are not working out for
Variable Spending Variance Definition: The difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred based on the actual activity of the period.
Variable Overhead Efficiency Variance Definition: The difference between the actual activity (direct labor-hours, machine-hours, or some other base) of a period and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.
Variable/Direct/Marginal and Absorption CostingDiscussion Questions and Answers: Questions: Differentiate between direct costs and direct costing. See answer. Distinguish between period costs and product costs. See answer. Why does the direct costing or variable costing theorist exclude fixed manufacturing costs from inventories? See answer In
Limitations of Variable Costing – GAAP and External Reports: Learning Objectives: What are the limitations of variable costing? Is variable costing acceptable for external reports? Do financial statements prepared under variable costing system conform to generally accepted accounting principles (GAAP)? Practically speaking, absorption costing
Variable Costing Definition: A costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Variable costing is also called marginal costing and direct costing.
Variable Costing and Theory of Constraints (TOC): The Theory of Constraints (TOC) focuses on managing constraints in a company as the key to improving profits. Companies involved in Theory of Constraints (TOC) use a form of variable costing. One difference is that in Theory
Variable Cost Definition: Variable cost is a cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.
Cost Classifications for Predicting Cost Behavior (Variable and Fixed Cost): Learning objectives of this article: Define and explain variable cost and fixed cost. Give examples of variable and fixed costs. What is the difference between variable and fixed cost. What are the types of
Absorption costing vs Variable costing: Learning Objectives: Define and explain variable and absorption costing. Explain the difference between variable and absorption costing and calculate unit product cost under each method. Absorption Costing or Full Costing System: Definition and explanation: Absorption costing is a costing
Variable Costing System A Decision Making Tool for Management: After studying this chapter you should be able to: Explain how variable costing differs from absorption costing and compute unit product costs under each method Prepare income statements using variable and absorption costing. Reconcile variable
Value Chain Definition: The major business functions that add value to a company’s products and services. These functions consist of research and development, product design, manufacturing, marketing, distribution, and customer service.
Valuation of Unsold Stock Or Closing Stock in Consignment Accounting: Learning Objectives: How is the closing stock or unsold stock laying with the consignee valued?. The valuation of stock laying with the consignee at the time of final closing of the account of the