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.
Universality of Management Definition: Universality of management means the reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational areas, and in organizations in all countries around the globe.
Reciprocal Method Definition: A method of allocating service department costs that gives full recognition to interdepartmental services.
Time-Adjusted Rate of Return Definition: This term is synonymous with internal rate of return.
Unit-Level Activities Definition: Activities that arise as a result of the total volume of goods and services that are produced, and that are performed each time a unit is produced.
Under-Applied Overhead Definition: A debit balance in the Manufacturing Overhead account that arises when the amount of overhead cost actually incurred is greater than the amount of overhead cost applied to Work in Process during a period.
Overhead Application Definition: The process of charging manufacturing overhead cost to job cost sheets and to the Work in Process account.
Plan-do-check-act (PDCA) Cycle Definition: A systematic approach to continuous improvement that applies the scientific method to problem solving. This is only definition of plan do check act cycle (PDCA) Click here to know more about plan-do-check-act (PDCA) cycle
Over-applied Overhead Definition: Over-applied overhead is a credit balance in the Manufacturing Overhead account that arises when the amount of overhead cost applied to Work in Process is greater than the amount of overhead cost actually incurred during a period.
Perpetual Inventory System Definition: Perpetual inventory system may be defined as a method of recording stores balances after every receipt and issue to facilitate regular checking and to obviate closing down for stock taking.” So perpetual inventory system implies continuous maintenance of stock records
Periodic Inventory System Definition: Periodic inventory system is that does not require a day-to-day record of inventory changes. Costs of materials used and costs of goods sold cannot be calculated until ending inventories, determined by physical count, are subtracted from the sum of opening
Performance Report Definition: Performance report is the detailed report comparing budgeted data to actual data.
Out-of-Pocket Costs Definition: Out of Pocket Cost is actual cash outlays for salaries, advertising, repairs, and similar costs.
Raw Materials Definition: Materials that are used to make a product. A finished product of a firm can be a raw material for another firm. For example plastic is a finished product for the manufacturer of plastic but raw material for manufacturers of computers
Production Budget Definition: Production budget is a detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs. This page only defines the term click here for detailed study about production budget.
Payback Period Definition: Payback period is the length of time that it takes for a project to recover its initial cost out of the cash receipts that it generates.
Range of Acceptable Transfer Price Definition: The range of transfer price within which the profits of both the selling division and the buying division would increase as a result of a transfer.
Participative Budget Definition: A method of preparing budgets in which managers prepare their own budgets. These budgets are then reviewed by the manager’s supervisor, and any issues are resolved by mutual agreement. See Self-imposed budget.
Organizational Culture Definition: Organizational culture system of shared meaning and beliefs held by organizational members that determines, in large degree, how employees act.