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.
Job Order Costing System Definition: A costing system used in situations where many different products, jobs, or services are produced each period. Click here to read detailed about job order costing system Recommended Books ! Or Download E accounting book in MS-word format
Internal Rate of Return Definition: The discount rate at which the net present value of an investment project is zero; thus, the internal rate of return represents the interest Yield promised by a project over its useful life. This term is synonymous with time-adjusted
Cycle Time Definition: Cycle time is the time required to make a completed unit of product starting with raw materials. Cycle time is also known as throughput time.
Internal Failure Cost Definition: Internal failure costs are those costs that are incurred as a result of identifying defective products before they are shipped to customers.
Customer-Level Activities Definition: Activities that are carried out to support customers but that are not related to any specific product.
Interdepartmental Services Definition: Services provided between service departments. Also see Reciprocal services
Curvilinear Costs Definition: A relationship between cost and activity that is a curve rather than a straight line.
Cross-Subsidization Definition: Improper assignment of costs among a company’s segments; also called cost distortion.
Informational Roles Definition: Managerial roles that involve receiving, collecting, and disseminating information. The three informational roles include monitor, disseminator, and spokesperson. Relevant Terms: Interpersonal Roles Decisional Roles
Industrial Revolution Definition: The advent of machine power, mass production, and efficient transportation.
Job Cost Sheet Definition: A form prepared for each job that records the materials, labor, and overhead costs charged to the job.
Indirect Method of Cash Flow Definition: A method of computing the cash provided by operating activities that starts with net income and adjusts it to a cash basis. It is also known as the reconciliation method.
Cost-Volume-Profit (CVP) Graph Definition: The relations between revenues, costs, and level of activity in an organization presented in graphic form.
Indirect Cost Definition: Indirect cost is a cost that cannot be easily and conveniently traced to the particular cost object under consideration.
Indirect Materials Definition: Small items of material such as glue and nails. These items may become an integral part of a finished product but are traceable to the product only at great cost or inconvenience.
Indirect Labor Definition: The labor costs of janitors, supervisors, materials handlers, and other factory workers that cannot be conveniently traced directly to particular products.
Cost Structure Definition: Cost structure is the relative proportion of fixed, variable, and mixed costs found within an organization.
Independent Variable Definition: An independent variable is a variable that acts as a causal factor; activity is the independent variable, as represented by the letter X in the following equation: Y = a + bX