Accounting

Yield variance is the difference between the actual and standard output of a production or manufacturing process based on standard material and labor inputs. The…

Accounting employs costing, which benefits the organization and the business in the long run. It’s a part of the commerce stream. Accountants used to use…

The allocation of factory overhead to products based on the volume of production resources consumed is known as traditional costing. This strategy applies cause-and-effect techniques…

Labor Idle Time Variance is the cost of direct labor standby time that could not be used in production for a variety of reasons such…

The predicted selling price of goods minus the cost of their sale or disposal is known as net realizable value or NRV. It’s typically used…

A budget is a quantitative expression of a business plan for a specific future period, typically a year. It is simply a financial projection for…

Lower of cost or market (LCM or LOCOM) is a method for valuing inventory that is mandated by U.S. GAAP (Generally Accepted Accounting Principles). Ending…

MRP II, or manufacturing resource planning, is a system for successfully planning the utilization of a manufacturer’s resources. It enables manufacturers to create a precise…

Capacity requirements planning (CRP) is a strategy or application used mostly by manufacturing organizations to determine their capacity to meet their production targets. The CRP…

A flexible budget in business is one that can be adjusted based on changing costs and revenue. The importance of a flexible budget is heavily…

The operating cash flow margin is a profitability ratio that measures the amount of cash generated by a company’s operating operations as a proportion of…

Amortization of intangible assets is comparable to depreciation, which is the process of spreading out the expense of a company’s assets over time. An intangible asset…