Shamsa Archive
Middle Managers Definition: Middle Managers are 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. Relevant Terms: Manager First Line Managers Middle Managers Top Level
Merchandise Purchases Budget Definition: Merchandise purchase budget is a budget used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period. Merchandise Purchase Budget Formula or Equation: Merchandise to be purchased = Budgeted units to
Measuring Direct Labor Cost in Job Order Costing System: Learning objective of this article: What is a labor time ticket? Give an example of labor time ticket. How direct labor cost is measured and recorded on job cost sheet in a job order costing
Measuring Direct Materials Cost in Job Order Costing System: Learning objective of this article: What is a materials requisition form. Give an example of materials requisition form. What is a job cost sheet. Give an example of job cost sheet. How direct materials cost
Maximum Level or Maximum Limit of Stock: Learning Objective: Definite and explain maximum limit or maximum level of stock. How is maximum limit or maximum level calculated? Definition and Explanation: The maximum stock limit is upper level of the inventory and the quantity that
Materials Ledger Card–Perpetual Inventory: As purchased materials go through the systematic verification of quantities, prices, physical condition, and other checks, the crux of the accounting procedure is to establish a perpetual inventory – maintaining for each type of material a record showing quantities and
Materials/Store Ledger Card Definition: Materials or store ledger card provides a continuous record of materials received, issued and balance at any time both in quantity and value. In other words, This card shows the detailed information regarding receipts, issues and the balance in hand
Materials and Inventory Cost Control: After studying this chapter you should be able to: Materials control is the system that ensures the provision of the required quantity and quality at the required time with in the minimum of investment. It covers the following functions:
Materials Requisition Form Definition: A detailed source document that specifies the type and quantity of materials that are to be drawn from the storeroom and identifies the job to which the costs of materials are to be charged.
Material Requirements Planning (MRP) Definition: Materials requirement planning (MRP) is an operations management tool that uses a computer to help manage materials and inventories. The basic function of material requirement planning MRP system includes inventory control, bill of material processing and elementary scheduling. MRP
Materials Quantity Variance Definition: Direct materials quantity variance is a measure of the difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard price per unit of materials. Direct materials quantity variance is also known
Materials Price Variance Definition: Materials price variance is a measure of the difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased. Formula of Direct Materials Price Variance: [Materials Price Variance = (Actual quantity purchased
Material Budgeting | Direct Materials Budget: Learning Objective of the article: Define and explain direct materials budget or Materials Budgeting. Prepare a direct material budget including a schedule of expected cash disbursements for purchases of materials. Definition and Explanation of Direct Materials Budget: Direct
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
Market Value Method or Reversal Cost Method: Learning Objectives: Define and explain market value method. Explain the use of market value method while costing by-products Market value method or Reversal cost method is similar to the last technique (By Product Revenue deducted from Production
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
Market or Sales Value Method–Allocation of Joint Cost: Learning Objectives: Explain the market value method or sales value method of joint cost allocation between products. Market or sales value method enjoys great popularity because of the argument that market value of any product is
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]
