Tag: product

Key Performance Indicators (KPI’s)

See Also: Flash Reports Normalized Earnings Continuous Accounting: The New Age of Accounting Collection Effectiveness Index Key Performance Indicators (KPIs) Definition Key Performance Indicators (KPIs) are defined as the key drivers of economic activity for a company In essence, KPIs measure the productivity of an organization. By performing a key drivers analysis of the most

Read More

Inventory Shrinkage

Inventory Shrinkage Definition Inventory shrinkage means that, somewhere along the line, there is a drop in product numbers from the time of manufacture to the time of sale. Clearly, this is a bad thing for both the consumer and the producer. On the producer side of things, the inventory shrinkage factor causes an uptick in

Read More

Inventoriable Costs

See also: Just in Time Inventory System Perpetual Inventory System Inventory Turnover Ratio Analysis Days Inventory Outstanding LIFO vs FIFO Inventoriable Costs In accounting, inventoriable costs refer to all costs incurred to obtain or produce the end-products. Apply these costs to the products the company produces and sells. The cost of raw materials, direct labor,

Read More

Gross Domestic Product (GDP)

Gross Domestic Product (GDP) Definition The gross domestic product is the value of goods and services produced in a national economy usually over a year, but can be any period of time. Gross Domestic Product (GDP) Explained The GDP, defined is the primary indicator of a country’s economy over time. Gross domestic product history can

Read More

Freight on Board (FOB)

See Also: Ex Works (EXW) How to manage inventory Just in Time Inventory System Inventory Cost Accounting Principles Freight on Board (FOB) Definition Freight on Board, known internationally as Free on Board, are the terms of a transaction within a contract. The terms are there to determine liability and when revenue recognition can take place

Read More

Direct Materials

See Also: Direct Cost vs Indirect Cost Direct Labor Cost Driver Direct Labor Variance Formulas Direct Material Variance Formulas Absorption Cost Accounting Direct Materials Definition In accounting, direct materials are the resources used to make a product. You must clearly link these resources to the product you are producing. Direct material costs are one of

Read More

Direct Cost vs Indirect Cost

See Also: Direct Labor Direct Materials Cost Driver Direct Labor Variance Formulas Direct Cost vs Indirect Cost In accounting, there is a distinction between direct cost vs indirect cost. You can trace direct costs to a particular cost object. However, you cannot trace indirect costs to a particular cost object. A cost object is something

Read More

Delivery Order

See Also: Economic Order Quantity (EOQ) Sales Order Business Intelligence and Finance Mergers and Acquisitions (M&A) Delivery Order Definition The delivery order definition is the document which details the delivery information of an item, is very important in distribution. A delivery order is an important document in 2 ways: it has full details of how the

Read More

Ex Works (EXW)

See Also: Freight on Board (FOB) Transfer Risk How to manage inventory Accounting Principles Accounting Concepts Ex Works (EXW) Definition Ex works is an agreement between a buyer and a seller that the seller assumes no responsibility for the cost or liability for a product after it is produced and has left the seller’s warehouse.

Read More

Deferred Revenue

See Also: Deferred Income Tax Deferrals Income Statement Accounting Principles Generally Accepted Accounting Principles (GAAP) Deferred Revenue Definition Deferred revenue is considered a liability to companies that contain them. It occurs because a customer has paid for a product or service, but the company has yet to provide the product or perform the service. Deferred

Read More

Contingent Liability

See Also: Current Liabilities Balance Sheet Accounting Principles Accounting Concepts Subsequent Events Contingent Liability Definition A contingent liability, defined is an obligation that a company might or might not have to recognize. This is because the event(s) are uncertain. It is also necessary for future events to occur to determine whether or not the obligation

Read More

Complementors (Sixth Force of Porter’s Five Forces)

See also: Porter’s Five Forces of Competition Threat of New Entrants Supplier Power Buyer Bargaining Power Threat of Substitutes Intensity of Rivalry Porter’s Sixth Force Definition Complementors, Porter’s sixth force, are companies or entities that sell or offer goods or services that are compatible with, or complementary to, the goods or services produced and sold

Read More
Skip to content