Management Accounting

Hurdle Rate

Hurdle Rate Hurdle rate is the minimum return from an investment project which requires by the shareholder or top management ...
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Special Order Pricing

Special Order Pricing Special order pricing is the price which the company can offer to their customers due to the ...
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Contribution Margin | Formula | Example | Analysis

Contribution Margin The contribution margin is the amount of sale which remains after deducting variable cost. It can be present ...
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Degree of Operating Leverage

Degree of Operating Leverage The degree of operating leverage (DOL) analyzes the change of the company’s operating income due to ...
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Predetermined Overhead Rate

Predetermined Overhead Rate Predetermined overhead rate is the estimated overhead that will allocate to each product at the begining of ...
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Joint Cost

Joint Cost Joint cost is the cost that incurs during the production of multiple products at the same time. It ...
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Prime Cost

Prime Cost Prime cost is the manufacturing cost, which consists of both direct material and direct labor. It is the ...
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Direct Cost and Indirect Cost

Direct Cost and Indirect Cost Direct cost is the cost tied directly to the products or services, and it is ...
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Opportunity Cost

Opportunity Cost Opportunity Cost is the benefit that we give up in order to get the alternative return. In management ...
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Accounting Rate of Return

Accounting Rate of Return (ARR) Accounting rate of return is the estimated accounting profit that the company makes from investment ...
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