Invoicing Goods Higher Than Cost in Consignment: Learning Objectives: What is the accounting treatment when consignor invoices goods higher than the actual cost? Sometimes in place of sending the goods to the consignee at cost price the consignor invoices them at higher price, the
Invoice Approval and Data Processing: By the time materials reach the receiving department, the company unusually will have received the invoice from the vendor. This invoice and a copy of the purchase order are filled in the accounting department. When the receiving report with
Investment Center Definition: A business segment whose manager has control over cost and over revenue and that also has control over the use of investment funds.
Investing Activities definition: Investing activities are transactions that involve acquiring or disposing off non current assets. Relevant terms: Cash flow statement Operating activities Financial activities Cash equivalents
Companies should generally use the same inventory pricing methods or interim financial reporting and make provisions for write downs to make market at interim dates on the same basis as used at annual dates when preparing published financial statements. However, the following exceptions are
Ending Finished Goods Inventory Budget: Learning Objective of the article: Define and explain ending finished goods inventory budget. Prepare a manufacturing overhead budget. After preparing sales budget, production budget, direct materials budget, direct labor budget, and manufacturing overhead budget the management has all the
Intranet Definition: An internal organizational communication system that uses internet technology and is accessible only by organizational employees.
Interpersonal Roles Definition: Interpersonal roles are those roles that involve people and other duties that are ceremonial and symbolic in nature. The three interpersonal roles include being a figure head, leader, and liaison. Relevant Terms: Informational Roles Decisional Roles
International Aspects of Transfer Pricing: The objective of transfer pricing change when multinational corporations involved and the goods and services being transferred cross international borders. The objectives of international transfer pricing, as compared to domestic transfer pricing are summarized below: Transfer Pricing Objectives Domestic
International Aspects of Quality-ISO 9000 Quality Standards: Many of the tools used in quality management today were developed in Japan after World War II. In statistical process control, Japanese companies borrowed heavily from the work of Edwards Deming, However, Japanese companies are largely responsible
International Aspects of Budgeting: A multinational company faces special problems when preparing a budget. The problems arise because of fluctuations in foreign currency exchange rates, the high inflation rates found in some countries, and local economic conditions and governmental policies that affect everything from
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
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.
Debt Service Ratio or Interest Coverage Ratio: Definition: Interest coverage ratio is also known as debt service ratio or debt service coverage ratio. This ratio relates the fixed interest charges to the income earned by the business. It indicates whether the business has earned
Interdepartmental Services Definition: Services provided between service departments. Also see Reciprocal services
Insurance Policy Method of Depreciation: Learning Objectives: Define and explain the insurance policy method of depreciation. Definition and Explanation: Insurance policy method is a slight modification of the depreciation fund method or sinking fund method. Under this method the amount represented by the depreciation
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
Inflation and Capital Budgeting Analysis: Learning Objectives: Does inflation impact capital budgeting analysis? Explain. Doesn’t inflation have an impact in a capital budgeting analysis? The answer is qualified yes in that inflation does have an impact on the numbers that are used in capital