Accounting Definitions
Accounting definitions are defined by different authors in different ways. Accounting definitions are easy to understand and in easy language. Accounting definitions provides proper guideline & process in the preparation of different accounts of any thing.
Direct Material Price variance can be defined as the difference between the actual price of the materials used for the production purposes and the standard cost of the materials that are purchased for the production. The formula of direct material price variance can be
Direct labor efficiency variance is the measure of the efficiency of the direct labor that is applied to any project within a business company. It can be defined as the measure of the difference the standard cost of the direct labor hours that are
Sales quantity variance is somewhat similar to the sales volume variance and it is the measure of the change in the contribution margin or the profit per unit volume of the sales that results due to the change in the number of actual sales
Direct material usage variance is the measurement of degree of change in the usage of material in a current accounting period for a desired level output. It can be defined as the difference between the actual material used and the standardize consumption of the
Sales volume variance is the difference between the actual sales and the projected sales that results in the contribution profit of a business entity. There may be a number of reasons of difference between the actual and the budgeted sales that can be explained
Variance analysis is a process of measuring and analyzing the difference between the two figures. Variance analysis can be defined as a statistical or accounting tool that is used in order to identify the causes of variance in financial and the operational data of
The word variance is actually derived from the word variety that in terms of statistics means the difference among various scores and readings. Variance can be termed as the basic or the raw material of the statistical analysis. Variance ensures accuracy as more variance
Offset Mortgage as the name indicates is the type of the mortgage that has an additional offset attached to it. In order to explain offset mortgage we can say that it is a traditional mortgage along with one or more deposited accounts attached with
Offensive competitive strategy is a corporate strategy where the company or the business entity tends to pursue the changes in the market in a vigorous and active manner. The major objective behind this strategy is to adopt the changes in the market in a
Over leveraged is an accounting term and in actual it is a financial condition of a business entity or a company where the business is carrying too much debt over it. The amount of debt on the business is intense that the business is
Outlay cost can be defined as the concrete cost related to the business that remains constant and can be defined at any time such as past, present and future. It is very easy to identify and define outlay costs because these are the concrete
Outsourcing is a concept of getting the work done from some source that is outside the business entity or the business corporation. With the concept of outsourcing companies distribute the work or certain projects to the supplier that are outside the circle of the
Overall turnover is the other name of total revenues of a company or a business entity. This is a synonym to total revenues term that is commonly used in the regions of Europe and Asia. Whereas the term overall turnover is used in North
Overcast is a type of forecasting error. This error occurs when a business entity or a company is trying to estimate or forecast its future financial entities such as future cash flows, production units required in future, inventory requirement in future, level of efficiency
Accommodation line can be defined as an addition, deduction, transformation or any kind of change in an existing insurance contract. There are several reasons of introducing this change as this change is either requested by broker or the insurance company or the individual so
As the name indicates the accommodation trading is a kind of adjustment trading in which one trader accommodates or adjusts for another trader by entering or establishing a non-competitive purchase or sales order or a non competitive environment within the market. Accommodation trading is
Accommodation endorsement can be defined as the written agreement between the two entities where one entity legally back the credit liability of the other entity. This is a type of insurance that is used to create and enhance the creditworthiness of an entity having
Accounting Earnings can be defined as the total amount that is earned by a business entity or a company in the given accounting period that may last for a year or a quarter as reported by the accounting standards such as GAAP. The accounting