Abida Archive
Methods of Controlling and Improving the Rate of Return on Investment (ROI): Return on investment is normally used to judge the managerial performance in an investment center. Managers therefore try to control and improve the ROI of their investment center. Here we shall discuss
Controlling Definition: Ensuring that the plan is actually carried out and is appropriately modified as circumstances change.
Controlling and Costing Materials – Questions and Answers: Questions: List the forms more frequently used in the procurement and use of materials. Should formal purchase requisitions and purchase orders be prepared for the purchase of incidental supplies, services, and repairs? Explain. How is an
Controlling and Costing Materials: After studying this chapter you should be able to: Effective materials management is essential in order to (1) provide the best service to customers, (2) produce at maximum efficiency, and (3) manage inventories at predetermined levels to stabilize investments in
Controller Definition: Controller is defined as the manager in charge of the accounting department in an organization.
Factory Overhead Controllable Variance: Learning Objective of the article: Define and explain factory overhead controllable variance. How FOH controllable variance is calculated? What are the reasons / causes of unfavorable controllable variance? Contents: Definition Formula of factory overhead controllable variance Example Reasons / causes
Control Definition: Control is the process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.
Contribution Margin (CM) Ratio Definition: The contribution margin as a percentage of total sales is called contribution margin ratio. Contribution margin ratio = Contribution margin / Sales Click here to download Contribution Margin Ratio Notes (Printable)
Contribution Margin Definition: Contribution margin is the amount remaining from sales revenues after all variable expenses have been deducted. Contribution Margin = Sales Revenue – Variable Cost Click here to read full article about contribution margin
Contribution Approach Definition: Contribution approach is an income statement format that is geared to cost behavior in that costs are separated into variable and fixed categories rather than being separated according to the functions of production, sales, and administration.
Continuous or Perpetual Budget Definition: A 12-month budget that rolls forward one month as the current month is completed.
Contingency Approach Definition: An approach that says that organizations are different face different situations (contingencies) and require different ways of managing.
Constraint Definition: A constraint is anything that prevents an organization or individual from getting more of what it wants. Or a limitation under which a company must operate, such as limited machine time available or limited raw materials available that restricts the company’s ability
Consignment Accounting Questions and Answers: Learning Objectives: Answer the various general questions about consignment accounting. Theoretical Questions: Distinguish between a sales and consignment. Click here to see answer. What is “consignment of goods”? Is it the same as “goods on sale or return” Click
Consignment Accounting problems and exercises: Learning Objectives: Prepare journal entries, consignment account and consignee account in the books of consignor. Prepare journal entries and consignor account in the books of consignee. Problem 1 (Journal Entries and Ledger Accounts): Riaz Sugar Factory of Multan, consigned
Conceptual Skills Definition: Conceptual Skills are the skills managers must have to think and to conceptualize about abstract and complex situations. Using these skills, managers must be able to see the organization as a whole, understand the relationships among various subunits, and visualize how
Sale Mix and Break Even Analysis With Multiple Products: Learning Objectives: Calculate break even point when a company sells more than one product. Sale mix–Definition and Explanation of the Concept: The term sale mix refers to the relative proportion in which a company’s products
Present Value and Future Value – Explanation of the Concept: Learning Objectives: Understand present value concepts and the use of present value tables. Compute the present value of a single sum and a series of cash flows. A dollar received now is more valuable