A Latin term that means in proportion. See prorate.
A Latin term that means in proportion. See prorate.
What is the meaning of pro rata? Author: Harold Averkamp, CPA, MBA Pro rata is a Latin term that means in proportion. Pro rata is related to prorate, a term used in cost accounting. To illustrate the term pro rata,...
is the meaning of pro rata? What is the return on stockholders' equity (after tax) ratio? Why aren't retained earnings distributed as dividends to the stockholders? Do corporations issue both common stock and...
Income based upon some assumptions.
Financial statements based upon various assumptions.
What are pro forma financial statements? Author: Harold Averkamp, CPA, MBA Definition of Pro Forma Financial Statement A pro forma financial statement is one based on certain assumptions and projections (as opposed to...
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of what the communicator intends. Keep in mind that the sender of a message might not realize that there are important differences between slightly different terms. Join PRO to Track Progress Mark the Question as Read...
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A word to describe whether a company is able to earn more revenues than expenses.
To assign or allocate on a logical basis. For example, the materials price variance in a standard costing system is prorated to the following categories: materials inventory, work-in-process inventory, finished goods...
Another word for purchasing.
An individual owner of a business that is not incorporated.
See sole proprietorship.
The amount received from the sale of an asset, from the issuance of bonds or stock, or from a bank loan.
The products with significant value that emerge at a split-off point in a process. When a joint product has little value it is referred to as a by-product.
A department that is directly involved in manufacturing products. Examples are the machining, finishing, and assembling departments.
The cost of repairing or replacing previously sold products during their warranty periods.
See inventory: work-in-process (WIP).
In manufacturing, the product cost includes direct materials, direct labor, and manufacturing overhead. A retailer’s product cost is the net cost from suppliers plus costs to get the product in place and ready for...
See gross profit percentage.
A formal, written promise to pay interest and to repay the principal amount.
See manufacturing costs.
The statements, standards, interpretations and other financial reporting guidelines issued by the Financial Accounting Standards Board. The FASB pronouncements are available at www.FASB.org.
Work-in-progress is the long-term asset account that is used to report the amounts spent on the construction of buildings and equipment until the asset is completed and put into service.
A division or department of a business whose managers are responsible for both revenues and expenses.
Also referred to as illusory profits. Occurs because accountants use past costs rather than replacement costs. For example, in computing the cost of goods sold accountants often use the FIFO cost flow assumption. This...
The expenses directly incurred by a nonprofit organization in providing one of its programs.
See phantom profits.
The activities provided by a nonprofit in carrying out one of its major programs.
Net sales revenues minus the cost of goods sold.
A sole proprietorship, partnership, or corporation organized for the purpose of earning profits and enhancing the financial position of the owners.
Dollars of gross profit divided by the dollars of net sales. Also known as gross margin.
Net income divided by net sales.
and it will decrease in total as sales decrease. Mixed Wrong. A retailer's cost of goods sold will increase in total as sales increase and it will decrease in total as sales decrease. Mark the Quiz as Complete...
See fixed manufacturing overhead volume variance.
A department within a factory that does not directly produce a product. Examples are the factory maintenance department, factory administrative department, and quality assurance department.
A mathematical tool to optimize profits (contribution margin) given a limited amount of inputs and other constraints.
A dividend paid in assets other than cash.
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