# Abida Archive

## Relaxing (Elevating) the Constraint Definition

Relaxing (Elevating) the Constraint Definition: An action that increases the capacity of a bottleneck. As a result constraint give some relaxation and productivity or provision of services to customers are increased to some extent. This relaxation my transfer the term “constraint” to another resource.

## Regression Line Definition

Regression Line Definition: A line fitted to an array of plotted points. The slope of the line, denoted by the letter b in the linear equation Y = a + bX, represents the average variable cost per unit of activity. The point where the

## Recording Cost of Goods Manufactured and Sold in Job Order Costing

Recording Cost of Goods Manufactured and Sold in Job Order Costing: Cost of Goods Manufactured (COGM): When a job has been completed, the finished out put is transferred from the production department to the finished goods  warehouse. By this time, the accounting department will

## Recording Transactions of Bill of Exchange

Recording Transactions of Bill of Exchange: For the purpose of accounting, bills are classified under two heads: Bills receivable Bills payable Bills Receivable: A bill of exchange is treated as a bill receivable by one who is entitled to receive the sum due on

## Recording Non-manufacturing Costs in a Job Order Costing System

Recording Non-manufacturing Costs in a Job Order Costing System: In addition to manufacturing costs, companies also incur marketing and selling costs. These costs should be treated as period expenses and charged directly to the income statement and therefore should not go into the the

## Reconciliation Method Definition

Reconciliation Method 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 indirect method.

## Recognition of Net Revenue Method–By Product Costing

Recognition of Net Revenue Method–By Product Costing: This method recognizes the need for assigning some cost to the by-product. It does not attempt, however, to allocate any main product cost to the buy product. Any expenses involved in further processing or marketing the by-product

## Recognition of Gross Revenue Method–By Products Costing

Recognition of Gross Revenue Method–By Products Costing: This method is typical non-cost procedure in which the final inventory cost of the main product is overstated to the extent that some of the cost belongs to the by product. However this shortcoming is somewhat removed

## Reciprocal Services Definition

Reciprocal Services Definition: Services provided between service departments. Also see Interdepartmental services.

## Reciprocal Method Definition

Reciprocal Method Definition: A method of allocating service department costs that gives full recognition to interdepartmental services.

## Reciprocal Method of Cost Allocation – Service Department Costing

Definition: Reciprocal method is a method of allocating service department costs to other departments that gives full recognition to interdepartmental services. Explanation: The reciprocal method gives full recognition to interdepartmental services. Under the step method, only partial recognition of interdepartmental services is possible. The

## Receiving Materials

Receiving Materials: The function of the receiving department is to: unload and unpack incoming materials; check quantities received against the shippers packing list; identify goods received with descriptions on the purchase order; prepare a receiving report; notify the purchasing department of descriptions discovered; arrange

## Receipt and Payment Account

Receipt and Payment Account: Learning Objectives: Define and explain receipt and payment account. Why a receipt and payment account is prepared? Prepare a receipt and payment account. Definition and Explanation: Receipt and payment account is a mere summary of cash book for a year.

## Ray H. Garrison

Ray H. Garrison: Ray H. Garrison is emeritus professor of accounting at Brigham Young University, Provo, Utah. He received his B.S. and M.S. degrees from Brigham Young University and his D.B.A. degree from Indiana University. As a certified public accountant, professor garrison has been

## Return on Investment (ROI) Method for Measuring Managerial Performance

Return on Investment (ROI) Method for Measuring Managerial Performance: In a truly decentralized company, segment managers are given a great deal of autonomy. Profit and investment centers are virtually independent businesses, with their managers having about the same control over decisions as if they

## Raw Materials Definition

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

## Ranking Investment Projects – The Preference Decisions

Ranking Investment Projects – The Preference Decisions: Learning Objectives: Define and explain screening and preference decisions. Rank investment projects in order of preference. When considering investment opportunities, managers must make two types of decisions―screening decisions and preference decisions. Screening and Preference Decisions: Screening decisions:

## Range of Acceptable Transfer Price Definition

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.