sidra Archive
Purchase of Supplies, Services, and Repairs: Learning Objective of the article: Explain the procedure of Purchasing supplies, services and repairs. The procedure followed in purchasing productive materials should apply to all departments and divisions of a business. Purchase requisitions, purchase orders, and receiving reports
Working Capital Turnover Ratio: Definition: Working capital turnover ratio indicates the velocity of the utilization of net working capital. This ratio represents the number of times the working capital is turned over in the course of year and is calculated as follows: Working Capital
Workplace Spirituality Definition: The recognition that people have an inner life that nourishes is nourished by meaningful work that takes place in the context of community.
Typical Capital Budgeting Decisions: Learning Objectives: What type of business decisions require capital budgeting analysis? What types of business decisions require capital budgeting analysis? Business decisions that require capital budgeting analysis are decisions that involve in outlay now in order to obtain some return
Two Column Cash Book / Double Column Cash Book : Learning Objectives: Define and explain a two/double column cash book. Prepare a two column cash book. What is the difference between a single column cash book and a double column cash book? Definition and
Turnover Definition: Turnover is the amount of sales generated in an investment center for each dollar invested in operating assets. It is computed by dividing sales by the average operating assets figure.
Preparing Trial Balance / Accuracy of Ledger: Learning Objectives: Define and explain trial balance. What are the advantages of preparing a trial balance? What are the different methods of preparing trial balance? Definition and Explanation: Having posted all the transactions into the ledger, it
Trend Percentage: Definition and Explanation: Horizontal analysis of financial statements can also be carried out by computing trend percentages. Trend percentage states several years’ financial data in terms of a base year. The base year equals 100%, with all other years stated in some
Transfer Pricing Definition: The price charged when one division or segment provides goods or services to another division or segment of an organization.
Trend Analysis Definition: Trend analysis is a side-by-side comparison of two or more years’ financial statements.
Transfer of Materials Cost to Finished Production–Inventory Valuation: The ultimate, intended destination of direct materials is finished products or finished goods delivered to customers. The cost of materials used on each job or in each department is transferred from the materials requisition to the
Transfer at Cost to the Selling Division: Many companies set transfer prices at either the variable cost or full (absorption) cost incurred by the selling division. Although the cost approach to setting transfer prices is relatively simple to apply, it has many defects. First,
Learning Objectives: Define and explain trading account. (What is trading Account ?) What are the items of a trading account. Prepare the format of trading account. What are advantages of trading accounting? Definition and Explanation: A trading account is an account which contains, ”
Trade Discount Definition: Trade discount is an allowance or rebate from the scheduled price granted by the seller to buyer. In other words, Trade discount is an allowance made from the full invoice price to a customer who buys goods in the ordinary course
Traceable Fixed Cost Definition: Traceable fixed cost is a fixed cost that is incurred because of the existence of a particular business segment.
Learning Objectives: Define and explain traceable and common fixed costs or expenses. What is the difference between traceable and common fixed costs? The most puzzling aspect of segmented income statements is probably the treatment of fixed costs. While preparing segmented income statements the fixed
Total Quality Management (TQM) Definition: Total quality management A approach to continuous improvement that focuses on customers and using teams of front-line workers to systematically identify and solve problems. This is only definition of total quality management (TQM). Click here to read full article
Total Quality Management (TQM) System: Learning objective of the article: Define and explain total quality management (TQM). What are the advantages and disadvantages of total quality management. Definition and explanation of Total Quality Management Advantages Disadvantages Definition and Explanation of the Concept of Total