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.
Just in Time (JIT) Definition: Just In Time (JIT) is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. Click here to read full article about just in time (JIT)
Depreciation Tax Shield Definition: A reduction in tax that results from depreciation deductions. The reduction in tax is computed by multiplying the depreciation deduction by the tax rate.
Joint Products Definition: Two or more items that are produced from a common input are called joint products.
Joint Product Cost Definition: A joint cost may be defined as that cost which arises from the common processing or manufacturing of products produced from a common raw material. Whenever two or more different products are created from a single cost factor, a joint
Job Order Costing System Definition: A costing system used in situations where many different products, jobs, or services are produced each period. Click here to read detailed about job order costing system
Cycle Time Definition: Cycle time is the time required to make a completed unit of product starting with raw materials. Cycle time is also known as throughput time.
Cost Volume Profit (CVP) Formulas: Contribution margin = Sales – Variable expenses (manufacturing and non-manufacturing) Net operating income = Contribution margin – Fixed expenses (manufacturing and non manufacturing) Contribution margin ratio = Contribution margin / Sales Break even point (units) = Fixed expenses /
Customer-Level Activities Definition: Activities that are carried out to support customers but that are not related to any specific product.
Curvilinear Costs Definition: A relationship between cost and activity that is a curve rather than a straight line.
Cross-Subsidization Definition: Improper assignment of costs among a company’s segments; also called cost distortion.
Job Cost Sheet Definition: A form prepared for each job that records the materials, labor, and overhead costs charged to the job.
Cost Structure Definition: Cost structure is the relative proportion of fixed, variable, and mixed costs found within an organization.
Income Statement Definition: Income statement is the summary of a management’s performance as reflected in the profitability (or lack of it) of a firm over a certain period. It itemizes the revenues and expenses of past that led to the current profit or loss,
Cost of Goods Sold (COGS) Definition: Cost of goods sold, COGS, or “cost of sales”, includes the direct costs attributable to the production of the goods sold by a company. Figure representing the cost of buying raw materials and producing finished goods. The amount
COGM Formula: COGM Formula : Prime Cost = Direct Materials Cost + Direct Labor Cost Total Factory Cost or Manufacturing Cost = Direct Materials + Direct Labor Cost + Factory Overhead Conversion Cost = Direct Labor Cost + Factory Overhead Cost Cost
Cost of Goods Manufactured Definition: Cost of goods manufactured is the manufacturing costs associated with the goods that were finished during the period.
Human Skills Definition: Human skills involve the ability to work well with other people both individually and in group. Because managers deal directly with people, this skill is crucial! Managers with good human skills are able to get the best out of their people.
Cost of Capital Definition: The overall cost to an organization of obtaining investment funds, including the cost of both debt sources and equity sources.