business
When was Activity Based Costing developed?
ABC was first defined in the late 1980s by Kaplan and Bruns. It can be considered as the modern alternative to absorption costing, allowing managers to be...
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Business
business
What do you mean by payback period?
The payback period disregards the time value of money. It is determined by counting the number of years it takes to recover the funds invested. For exampl...
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business
Is sales commission a product cost?
Sales commissions are not part of the cost of a product. Therefore, sales commissions are not assigned to the cost of goods held in inventory or to the co...
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business
What is accounting cost and example?
Accounting cost is the recorded cost of an activity. For example, a manager wants to know the accounting cost of a product. If this information is needed ...
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business
Why is interest received a credit?
Interest income is credited to recognize the income. It is an income amount, hence credited when recognized. In some cases, interests are not received unt...
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business
How does fixed cost affect decision making?
Decision Making The availability of fixed cost information frequently promotes business decisions that reduce the operating leverage due to overproduction...
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business
What was the purpose of the Ernie machine?
ERNIE – Electronic Random Number Indicator Equipment – is the machine used to crank out millions of random numbers when the Post Office, and now NS&I,...
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business
Why is the balance sheet more important than income statement?
We can see the difference in what exactly each one reports. The income statement gives your company a picture of what the business performance has been du...
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business
What is used in a 3-column organizer?
In the first column, write the main subjects or topics from the text. In the second column, write significant details you learned from reading the text, f...
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business
What are movable assets?
Moveable Assets means all tangible property, including inventory, plant and machinery, vehicles, testing and other equipment, and spare parts for any such...
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