Archive about 'Dictionary-Costing Terms'
Tweet The following factors or circumstances where the external auditor can rely on the work of the internal auditor: The professional qualifications of the internal auditor both on competency and ethical grounds The adequacy of planning, control and documentation in the internal audit department The responsibility of the internal audit department, whether it be to […]
Tweet RETURN TO GLOSSARY INDEX Zero based budgeting Budgeting from scratch, as if the budget is being prepared for the first time. Every proposed expenditure comes under scrunity. The basis of ZBB is the decision packages. Decision packages are prepared for each responsibility centre. The packages describe the various levels of operations that a responsibility […]
Tweet RETURN TO GLOSSARY INDEX Yield The rate of return on investment
Tweet RETURN TO GLOSSARY INDEX Waste Unusable materials that have little or no value Weighted average The price used to value issues is the total cost of materials purchased divided by the total quantity of materials purchased. Weighted average A method to account for opening work in process. Under this method the opening WIP costs […]
Tweet RETURN TO GLOSSARY INDEX Value added Sales revenue less bought out goods and services. It measure the wealth created by the workforce Value analysis A systematic and analytical technique of analyzing all aspects of a product in order to determine whether costs can be reduced without affecting the quality. Variable budget Refers to as […]
Tweet RETURN TO GLOSSARY INDEX Under absorbed overhead The amount of overhead incurred exceeds the amount of overhead absorbed Uniform costing The use by many businesses of the same costing methods, principles, techniques and or practices.
Tweet RETURN TO GLOSSARY INDEX Transfer price The price at which goods and services are transferred from one process or department to another process or department of the same organization
Tweet RETURN TO GLOSSARY INDEX Sales allowance variance The difference between the actual sales allowance and the standard allowance multiplied by the quantity sold Sales contribution variance The difference between the actual contribution and the budgeted contribution Sales margin variance The difference between actual profit and budgeted profit Sale price variance The difference between the […]
Tweet RETURN TO GLOSSARY INDEX Relevant cost Expected future cost that will differ under alternatives Relevant range Activity levels in which the cost and sales relationships can be expected to remain valid Retention money The amount of the contractee is allowed, by a clause in the contract, to withhold payment of a proportion of the […]
Tweet RETURN TO GLOSSARY INDEX Period costs Costs treated as costs of the period Prime cost the total cost of direct material, direct labor and direct expenses Prime cost percentage rate Estimated overhead divided by the estimated prime cost. The result is expressed as a percentage. Process costing A costing method applied where a product […]