Screening Decisions and Preference Decisions: Learning Objectives: Define, explain and give examples of screening and preference decisions. Capital budgeting decisions fall into two broad categories: Screening decisions. Preference decisions. Screening Decisions – Definition and Explanation: Screening decisions relate to whether a proposed project meets
Cost Accounting Procedure for Scrap and Waste: (Scrap Accounting) In many manufacturing processes, waste and scrap result from: The processing of materials. Defective and broken parts. Absolute stock. Revisions or abandonment of experimental projects. Worn out or absolute machinery. This scrap should be collected
Scientific Management Definition: Scientific management means the use of scientific methods to determine the “one best way” for a job to be done.
Scatter Graph Method Definition: A method of separating a mixed cost into its fixed and variable elements. Under this method, a regression line is fitted to an array of plotted points by drawing a line with a straight-edge.
Sales Returns Book: Learning Objectives: Define and explain sales return book. What is a credit note? Prepare a sales returns book and post into ledger. Definition and Explanation: Sales returns book is also called returns inwards book. It is used for recording goods returned
Sales Mix Definition: The relative proportions in which a company’s products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.
Sales Day Book: Definition and Explanation: A sales book is also known as sales day book is a book of original entry in which are recorded the details of credit sales made by a businessman. Total of sales book shows the total credit sales
Sales Budget Definition: Sales budget is a detailed schedule showing the expected sales for coming periods; these sales are typically expressed in both dollars and units.
Multiple Regression Definition: An analytical method required in those situations where variations in a dependent variable are caused by more than one factor.
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
Multiple Predetermined Overhead Rates: Learning Objectives of the Article: What are multiple predetermined overhead rates? What is the need of calculating multiple predetermined overhead rates? When a single predetermined overhead rate is used for entire factory it is called plant wide overhead rate. This
More About Capital and Revenue Expenditures: Capitalized or Deferred Revenue Expenditures: Where a certain revenue expenditure incurred is of such a nature that its benefit is likely to be spread over a certain number of years, or where it is of non-recurring and special
Modified Accelerated Cost Recovery System (MACRS) Definition: A method of depreciation required for income tax purposes that depends on which of nine property classes an asset belongs.
Mixed Cost or Semi-variable Cost: Learning Objective of this Article: Define and explain mixed or semi-variable cost. Give examples of mixed costs. Analyze mixed cost using high-low point method. Definition and explanation of mixed or semi variable cost: A mixed cost is one that
Mixed Cost Definition: Mixed cost is the cost that contains both variable and fixed cost elements. Relevant Terms: Fixed cost Variable cost
Materials Mix and Yield Variance: Learning Objective of the article: Define and explain materials mix and yield variances. What are the formulas of materials mix and yield variances? Calculate materials mix and yield variance. Price and quantity variances of direct materials are explained on
Mix Variance and Yield Variance: Learning Objective of the article: Define and explain Mix Variance and yield variances. Why mix and yield variances are calculated? Basically, the establishment of standard product cost requires the determination of price and quantity standards. In many industries, particularly
Minimum Limit or Minimum Level of Stock: Learning Objective: Definite and explain minimum limit or minimum level of stock. How is minimum limit or minimum level calculated? Definition and Explanation: The minimum level or minimum stock is that level of stock below which stock