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.
Operating Assets Definition: Operating assets are cash, accounts receivable, inventory, plant and equipment, and all other assets held for productive use in an organization. Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ - Click here to Download
Operating Activities Definition: Transactions that enter into the determination of net income.
Master Budget Definition: Master Budget is a summary of a company’s plans in which specific targets are set for sales, production, distribution, and financing activities and that generally culminates in a cash budget, budgeted income statement, and budgeted balance sheet. Learn More About Master
Open System Definition: Open system is a system that dynamically interact with their environment.
Omnipotent View of Management Definition: Omnipotent view of management is the view that managers are directly responsible for an organization’s success or failure.
Market Price Definition: Market price is the price being charged for an item on the open market. OR The current price at which an asset or service can be bought or sold. Economic theory contends that the market price converges at a point where the forces of
Direct Materials Budget Definition: A detailed plan showing the amount of raw materials that must be purchased during a period to meet both production and inventory needs. Click here to read full article about direct materials budget.
Line Definition: A position in an organization that is directly related to the achievement of the organization’s basic objectives.
Direct Materials Definition: Those materials that become an integral part of a finished product and can be conveniently traced into it.
Last In First Out (LIFO) Method Definition: A method that operates under the assumption that materials issued should carry the cost of the most recent purchase, although the physical flow may actually be different. In other words, the last receipt of materials are issued
Direct Labor Definition: Direct labor costs are those factory labor costs that can be easily traced to individual units of product. Also called touch labor.
Least-Squares Regression Method Definition: A method of separating a mixed cost into its fixed and variable elements by fitting a regression line that minimizes the sum of the squared errors.
Direct Labor Definition: Direct labor costs are those factory labor costs that can be easily traced to individual units of product. Also called touch labor.
Direct Labor Budget Definition: A detailed plan showing labor requirements over some specific time period. Click here to read full article about direct labor budget.
Direct Exchange Transaction Definition: Transactions involving only non-current balance sheet accounts. For example, a company might issue common stock that is directly exchanged for property.
Direct Costing Definition: A costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Direct costing is also called marginal costing and variable costing.
Direct Cost Definition: Direct cost is the cost that can be easily and conveniently traced to the particular cost object under consideration.
Margin of Safety Definition: Margin of safety can be defined as the excess of budgeted (or actual) sales over the break-even volume of sales. Equation or Formula of Margin of Safety: [Margin of Safety = Total budgeted or actual sales − Break even sales]