Management Accounting

Hurdle Rate

Hurdle Rate Hurdle rate is the minimum return from an investment project which required by the shareholder or top management ...

Special Order Pricing

Special Order Pricing Special order pricing is the price which the company can offer to their customers due to the ...

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 ...

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 ...

Predetermined Overhead Rate

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

Joint Cost

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

Prime Cost

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

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 ...

Opportunity Cost

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

Accounting Rate of Return

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