Management Accounting
Financial Accounting Definition: Financial accounting is the phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization. Relevant Terms: Cost Accounting Managerial/Management Accounting Recommended Books ! Or Download E accounting book in MS-word format for just 20 $ -
Common Cost Definition: A common cost is a cost that is common to a number of costing objects but cannot be traced to them individually. For example, the wage cost of the pilot of a 747 airliner is a common cost of all of
Final Accounts of Non-Trading Concerns: Non-trading concerns usually maintain their accounts by the double entry system and periodically prepare their final accounts for the submission to their members and subscribers. The method of preparing final accounts by non trading concerns is different than trading
Committed Fixed Cost Definition: Committed fixed costs are those fixed costs that are difficult to adjust and that relate to the investment in facilities, equipment, and the basic organizational structure of a firm.
Final Accounts: Learning Objectives: What is trading and profit and loss account? What is the the difference between trial balance and balance sheet? Prepare trading and profit and loss account and balance sheet. Explain the preparations of final account Having proved the arithmetical accuracy
Code of Conduct for Management Accountants: Learning objectives of this article: What are the standards of ethical conduct for practitioners of management accounting and financial management Practitioners of management accounting and financial management have an obligation to the public, their profession, the organization they
Definition and Explanation of Accounting: Learning Objectives: Define and explain accounting. What are the main functions of accounting? Accounting is defined as “the art of recording, classifying and summarizing in terms of money transactions and events of a financial character and interpreting the results
First In First Out (FIFO) – Materials and Inventory Costing Method: Learning Objectives: Define and explain FIFO method. Give an example of FIFO costing method What are advantages and disadvantages of fist in first out (FIFO) costing method? Definition and Explanation of FIFO Method
First in First Out-FIFO Method Definition: A method that operates under the assumption that the materials which are received first are issued first and, therefore, the flow of cost should be in the same order. Issues are priced at the same basis until the
Feedback Definition: Accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that might otherwise go unnoticed.
Closed System Definition: Closed system is a system that is not influenced by or do not interact with its environment.
Bottleneck Definition: A machine or process that limits total output because it is operating at capacity.
Basic Factors of Determination of Depreciation: Learning Objectives: What are the basic factors of depreciation determination? For calculation depreciation the basic factors are: The original cost of the asset. The estimated working life of the asset or the number of years the asset is
Characteristics and Procedure of Process Costing System: The characteristics of process costing system: A cost of production report is used to collect, summarize and compute total and unit costs. Production is accumulated and reported by departments. Costs are posted to departmental work in process
Important Bookkeeping Terms: Before attempting to learn the art or science of bookkeeping it will be better to clarify some of the terms that will have to be used again and again. Transaction: Any dealing between two persons or things in a transaction. It
Characteristics of Joint Products and Joint Cost: Many products or services are linked together by physical relationships which necessitate simultaneous production. To the point of split-off or to the point where these several products emerge as individual units, the cost of the products forms
Accounting For Consignment / Consignment Accounts Rules Learning Objectives: Define and explain the terms consignment, consignor and consignee. What is the difference between consignment and sale? Make journal entries in the books of consignor and that of consignee. Prepare consignment account and consignee’s account
Effect of Change in Variable Cost and Sales Volume on Contribution Margin and Profitability: Learning Objectives: What is the effect of change in variable cost and sales volume on contribution margin and profitability. The following data is used to show the effects of changes
