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.
Division of Labor Definition: The breakdown of jobs into narrow and repetitive tasks is called division of labor. In 1776, Adam Smith published his book The Wealth of Nation, in which he argued for the economic advantages and organizations that society would gain from
Organization Definition: An organization is a deliberate arrangement of people to accomplish some specific purpose. Each organization has three characteristics; first, each organization has a distinct purpose. This purpose is usually expressed in terms of a goal or a set of goals that organization
Organizational Chart Definition: Organizational Chart is a visual diagram of a firm’s organizational structure that depicts formal lines of reporting, communication, and responsibility between managers.
Organizational Chart Definition: Organizational Chart is a visual diagram of a firm’s organizational structure that depicts formal lines of reporting, communication, and responsibility between managers.
Optional Straight Line Method Definition: A method of computing depreciation deductions under MACRS that can be used instead of the MACRS tables.
Operations Management Definition: The design, operation, and control of the transformation process that converts resources (labor and raw materials etc.) into finished goods or services.
Operating Leverage Definition: Operating leverage is a measure of how sensitive net income is to a given percentage change in sales. It is computed by dividing the contribution margin by net income. This page only defines the term click here to read full article
Operating Department Definition: Operating department is a department or similar unit in an organization within which the central purposes of the organization are carried out.
Discretionary Fixed Cost Definition: Discretionary fixed costs are those fixed costs that arise from annual decisions by management to spend in certain fixed cost areas, for example advertising and research.
Middle Managers Definition: Middle Managers are managers at the lowest level of the organization who manage the work of non-managerial employees who are directly involved with the production or creation of the organization’s products. Relevant Terms: Manager First Line Managers Middle Managers Top Level
Directing and Motivating Definition: Mobilizing employees to carry out plans and run routine operations.
Materials/Store Ledger Card Definition: Materials or store ledger card provides a continuous record of materials received, issued and balance at any time both in quantity and value. In other words, This card shows the detailed information regarding receipts, issues and the balance in hand
Materials Requisition Form Definition: A detailed source document that specifies the type and quantity of materials that are to be drawn from the storeroom and identifies the job to which the costs of materials are to be charged.
Material Requirements Planning (MRP) Definition: Materials requirement planning (MRP) is an operations management tool that uses a computer to help manage materials and inventories. The basic function of material requirement planning MRP system includes inventory control, bill of material processing and elementary scheduling. MRP
Direct Method Cash Flow Definition: A method of computing the cash provided by operating activities in which the income statement is reconstructed on a cash basis from top to bottom.
Direct method Cost of Allocation Definition: The allocation of all of a service department’s costs directly to operating departments without recognizing services provided to other service departments.
Materials Quantity Variance Definition: Direct materials quantity variance is a measure of the difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard price per unit of materials. Direct materials quantity variance is also known
Materials Price Variance Definition: Materials price variance is a measure of the difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased. Formula of Direct Materials Price Variance: [Materials Price Variance = (Actual quantity purchased