Managerial Accounting is defined as the measuring, analyzing the business transactions for organizations goal. Managerial accounting helps the manager to take decision within the organization. Managerial accounting is the combination of both financial and non-financial decisions making information’s to managers.
Who is A Certified Management Accountant: A management accountant who possesses the necessary qualification and who possesses a rigorous professional exam earns the right to be known as a certified Management Accountant (CMA). In addition to the prestige that accompanies a professional designation, CMAs
Weighted Average Method Definition: Issuing materials at an average cost assumes that each lot taken from the storeroom is composed of uniform quantities from each shipment in stock at the date of issue. Weighted average price is calculated by dividing the total cost of
Working Capital Definition: The excess of current assets over current liabilities. Working Capital = Current Assets − Current Liabilities
Zero Based Budgeting (ZBB) Definition: A method of budgeting in which managers are required to justify all costs as if the programs involved were being proposed for the first time.
Yield Definition: A term synonymous with internal rate of return and time-adjusted rate of return.
Volume Variance Definition: The variance that arises whenever the standard hours allowed for the output of a period are different from the denominator activity level that was used to compute the predetermined overhead rate.
Workforce Diversity Definition: A workforce that is more heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect differences.
Vertical Integration Definition: The involvement by a company in more than one of the steps from production of basic raw materials to the manufacture and distribution of a finished product.
Work-in-Process Definition: Units of product that are only partially complete and will require further work before they are ready for sale to a customer.
Revaluation Method of Depreciation: Learning Objectives: Define and explain the revaluation method of depreciation. When and where this method is used? As the name implies under revaluation method, the assets are valued at the end of each period so that the difference between the
Vertical Analysis Definition: Vertical analysis presentation of a company’s financial statements in common-size form is called vertical analysis.
Return on Investment (ROI) Definition: Net operating income divided by average operating assets. It also equals margin multiplied by turnover.
Variance Definition: The difference between standard prices and quantities on the one hand and actual prices and quantities on the other hand.
Variable Spending Variance Definition: The difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred based on the actual activity of the period.
Variable Overhead Efficiency Variance Definition: The difference between the actual activity (direct labor-hours, machine-hours, or some other base) of a period and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.
Positive Financial Leverage Definition: Positive financial leverage is a situation in which the fixed return to a company’s creditors and preferred stockholders is less than the return on total assets. In this situation, the return on common stockholders’ equity will be greater than the
Variable Costing Definition: A costing method that includes only variable manufacturing costs–direct materials, direct labor, and variable manufacturing overhead–in unit product cost. Variable costing is also called marginal costing and direct costing.
Plant Wide Overhead Rate Definition: Plant wide overhead rate is a single predetermined overhead rate that is used throughout a plant.