Sana Archive
Fixed Manufacturing Overhead Cost Deferred in Inventory Definition: The portion of the fixed manufacturing overhead cost of a period that goes into inventory under the absorption costing method as a result of production exceeding sales. Also see: Fixed manufacturing overhead cost released from inventory
Fixed Manufacturing Overhead Cost Released From Inventory Definition: The portion of the fixed manufacturing overhead cost of a prior period that becomes an expense of the current period under the absorption costing method as a result of sales exceeding production.
Fixed Installment Method or Straight Line Method or Original Cost Method of Depreciation: Learning Objectives: Define, explain and give example of fixed installment or straight line or original cost method. What are the advantages and disadvantages of of using this method? Fixed installment method
Fixed Cost Definition: A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.
Fixed Assets Turnover Ratio: Definition: Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means
Fixed Assets to Proprietor’s Fund Ratio: Definition: Fixed assets to proprietor’s fund ratio establishes the relationship between fixed assets and shareholders funds. The purpose of this ratio is to indicate the percentage of the owner’s funds invested in fixed assets. Formula: Fixed Assets to
First Stage Allocation Definition: The process by which overhead costs are assigned to activity cost pools in an activity-based costing system.
First Line Managers Definition: 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.
Finished Goods Definition: Units of product that have been completed but have not yet been sold to customers.
Financing Activities Definition: All transactions (other than payment of interest) involving borrowing from creditors or repaying creditors as well as transactions with the company’s owners (except stock dividends and stock splits). Relevant terms: Cash flow statement Operating activities Investing activities Cash equivalents
Accounting Ratios | Financial Ratios: Learning Objectives: Define and explain the term accounting ratios. What are advantages and limitations of using accounting or financial ratios. How financial ratios are classified. Ratios simply means one number expressed in terms of another. A ratio is a
Financial Accounting Ratios and Formulas: This is a collection of financial ratio formulas which can help you calculate financial ratios in a given problem. Analysis of Profitability: General profitability: Gross profit ratio = (Gross profit / Net sales) × 100 Operating ratio = (Operating
Financial Leverage Definition: Acquiring assets with funds that have been obtained from creditors or from preferred stockholders at a fixed rate of return.
Difference Between Financial and Managerial Accounting (Financial Accounting Vs Managerial Accounting): Learning objectives of this article: Compare and contrast financial and managerial accounting. What is difference between financial and managerial accounting? Financial accounting reports are prepared for the use of external parties such as
Financial Accounting Definition: Financial accounting is the phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization. Relevant Terms: Cost Accounting Managerial/Management Accounting
Final Accounts of Non-Trading Concerns: Non-trading concerns usually maintain their accounts by the double entry system and periodically prepare their final accounts for the submission to their members and subscribers. The method of preparing final accounts by non trading concerns is different than trading
Final Accounts: Learning Objectives: What is trading and profit and loss account? What is the the difference between trial balance and balance sheet? Prepare trading and profit and loss account and balance sheet. Explain the preparations of final account Having proved the arithmetical accuracy
First In First Out (FIFO) – Materials and Inventory Costing Method: Learning Objectives: Define and explain FIFO method. Give an example of FIFO costing method What are advantages and disadvantages of fist in first out (FIFO) costing method? Definition and Explanation of FIFO Method
