Accounting Definitions
Accounting definitions are defined by different authors in different ways. Accounting definitions are easy to understand and in easy language. Accounting definitions provides proper guideline & process in the preparation of different accounts of any thing.
Periodic Inventory System Definition: Periodic inventory system is that does not require a day-to-day record of inventory changes. Costs of materials used and costs of goods sold cannot be calculated until ending inventories, determined by physical count, are subtracted from the sum of opening
Multiple Regression Definition: An analytical method required in those situations where variations in a dependent variable are caused by more than one factor.
Performance Report Definition: Performance report is the detailed report comparing budgeted data to actual data.
Out-of-Pocket Costs Definition: Out of Pocket Cost is actual cash outlays for salaries, advertising, repairs, and similar costs.
Quantitative Approach Definition: The quantitative approach involves the use of quantitative techniques to improve decision making. This approach is also called operations research or management science.
Raw Materials Definition: Materials that are used to make a product. A finished product of a firm can be a raw material for another firm. For example plastic is a finished product for the manufacturer of plastic but raw material for manufacturers of computers
Production Budget Definition: Production budget is a detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs. This page only defines the term click here for detailed study about production budget.
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.
Payback Period Definition: Payback period is the length of time that it takes for a project to recover its initial cost out of the cash receipts that it generates.
Range of Acceptable Transfer Price Definition: The range of transfer price within which the profits of both the selling division and the buying division would increase as a result of a transfer.
Mixed Cost Definition: Mixed cost is the cost that contains both variable and fixed cost elements. Relevant Terms: Fixed cost Variable cost
Quality Costs Definition: Costs that are incurred to prevent defective products from falling into the hands of customers or that are incurred as a result of defective units. There are four major types of quality cost. These are appraisal cost, prevention cost, internal failure
Quality Circles Definition Small groups of employees that meet on a regular basis to discuss ways of improving quality.
Quality Cost Report Definition: A report that details appraisal cost, prevention cost, internal failure cost, and external failure cost. Click here to read a detailed article about quality cost report.
Participative Budget Definition: A method of preparing budgets in which managers prepare their own budgets. These budgets are then reviewed by the manager’s supervisor, and any issues are resolved by mutual agreement. See Self-imposed budget.
Organizational Culture Definition: Organizational culture system of shared meaning and beliefs held by organizational members that determines, in large degree, how employees act.
Organizational Behavior Definition: Organizational behavior is the field of study concerned with the actions (behavior) of people at work.
Organization Sustaining Activities Definition: Organizational sustaining activities are those activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.