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Financial Terms | |
FIFO method (of process costing) |
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Definition of FIFO method (of process costing)FIFO method (of process costing)the method of cost assignment that computes an average cost per equivalent
Related Terms:modified FIFO method (of process costing)the method of cost assignment that uses fifo to compute a cost per strict FIFO method (of process costing)the method of cost assignment that uses fifo to compute a cost per equivalent unit and, in transferring units from a department, keeps the Absorption costingA method of costing in which all fixed and variable production costs are charged to products or services using an allocation base. absorption costinga cost accumulation and reporting Absorption costingA methodology under which all manufacturing costs are assigned Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. activity based costing (ABC)A relatively new method advocated for the ![]() activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; Activity-based costing (ABC)A cost allocation system that compiles costs and assigns algebraic methoda process of service department cost allocation Allowance methodA method of adjusting accounts receivable to the amount that is expected to be collected based on company experience. attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute Average-Cost Inventory MethodThe inventory cost-flow assumption that assigns the average backflush costinga streamlined cost accounting method that speeds up, simplifies, and reduces accounting effort in an environment that minimizes inventory balances, requires Benefit Ratio MethodThe proportion of unemployment benefits paid to a company’s Benefit Wage Ratio MethodThe proportion of total taxable wages for laid off ![]() Bootstrapping, bootstrap methodAn arithmetic method for backing an business process reengineering (BPR)the process of combining information technology to create new and more effective Capitalization methodA method of constructing a replicating portfolio in which the manager purchases a Completed-Contract MethodA contract accounting method that recognizes contract revenue Corporate processing floatThe time that elapses between receipt of payment from a customer and the cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course Current rate methodUnder this currency translation method, all foreign currency balance-sheet and income Diffusion processA conception of the way a stock's price changes that assumes that the price takes on all direct costingsee variable costing Direct costingA costing methodology that only assigns direct labor and material costs Direct estimate methodA method of cash budgeting based on detailed estimates of cash receipts and cash Direct methodA method of preparing the operating section of the Statement of Cash Flows that uses the company’s actual cash inflows and cash outflows. direct methoda service department cost allocation approach Direct-Method FormatA format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities. Direct write-off methodA method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers. dividend growth methoda method of computing the cost Equity MethodAccounting method for an equity security in cases where the investor has sufficient FIFO (First In, First Out)An inventory valuation method that presumes that the first units received were the first ones First in, first-out costing method (FIFO)A process costing methodology that assigns the earliest First-In-First-Out (FIFO)A method of valuing the cost of goods sold that uses the cost of the oldest item in First-in, first-out (FIFO)A method of accounting for inventory. First-in, first-out (FIFO)An inventory valuation method under which one assumes that the First-In, First-Out (FIFO) Inventory MethodThe inventory cost-flow assumption that Flow-through methodThe practice of reporting to shareholders using straight-line depreciation and Full-Cost MethodA method of accounting for petroleum exploration and development expenditures full costingsee absorption costing high-low methoda technique used to determine the fixed hybrid costing systema costing system combining characteristics In-house processing floatRefers to the time it takes the receiver of a check to process the payment and Indirect methodA method of preparing the operating section of the Statement of Cash Flows that does not use the company’s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities. Indirect-Method FormatA format for the operating section of the cash-flow statement that Ito processStatistical assumptions about the behavior of security prices. For Job costingA method of accounting that accumulates the costs of a product/service that is produced either job order costing systema system of product costing used joint processa manufacturing process that simultaneously judgmental method (of risk adjustment)an informal method of adjusting for risk that allows the decision maker Kaizen costingThe process of continual cost reduction that occurs after a product Last-In, First-Out (LIFO) Inventory MethodThe inventory cost-flow assumption that assigns the most recent inventory acquisition costs to cost of goods sold. The earliest inventory life cycle costingthe accumulation of costs for activities that Lifecycle costingAn approach to costing that estimates and accumulates the costs of a product/service over Log-linear least-squares methodA statistical technique for fitting a curve to a set of data points. One of the method of least squaressee least squares regression analysis method of neglecta method of treating spoiled units in the Monetary / non-monetary methodUnder this translation method, monetary items (e.g. cash, accounts Moving average inventory methodAn inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase. multiprocess handlingthe ability of a worker to monitor net present value methoda process that uses the discounted Net Present Value (NPV) MethodA method of ranking investment proposals. NPV is equal to the present value of the future returns, discounted at the marginal cost of capital, minus the present value of the cost of the investment. Normalizing methodThe practice of making a charge in the income account equivalent to the tax savings Payback methodA capital budgeting analysis method that calculates the amount of Percentage-of-Completion MethodA contract accounting method that recognizes contract Price discovery processThe process of determining the prices of the assets in the marketplace through the ProcessA series of linked activities that result in a specific objective. For example, the process benchmarkingbenchmarking that focuses on practices and how the best-in-class companies achieved their results process complexityan assessment about the number of processes through which a product flows Process costingA method of costing for continuous manufacture in which costs for an accounting compared are compared with production for the same period to determine a cost per unit produced. Process costingA costing methodology that arrives at an individual product cost through the calculation of average costs for large quantities of identical products. process costing systema method of accumulating and assigning costs to units of production in companies producing large quantities of homogeneous products; Process flow productionA production configuration in which products are continually process mapa flowchart or diagram indicating every step process productivitythe total units produced during a period process quality yieldthe proportion of good units that resulted from the activities expended processing timethe actual time consumed performing the product- (or process-) level costa cost that is caused by the development, production, or acquisition of specific products or services Purchase methodAccounting for an acquisition using market value for the consolidation of the two entities' Purchase methodAn accounting method used to combine the financial statements of Purchased In-Process Research and DevelopmentUnfinished research and development that is acquired from another firm. relevant costinga process that compares, to the extent possible Reprocessed materialMaterial that has been reworked and returned to stock. Residual methodA method of allocating the purchase price for the acquisition of another firm among the risk-adjusted discount rate methoda formal method of adjusting for risk in which the decision maker increases the rate used for discounting the future cash flows to compensate for increased risk Simple compound growth methodA method of calculating the growth rate by relating the terminal value to simplex methodan iterative (sequential) algorithm used to solve multivariable, multiconstraint linear programming problems six-sigma methoda high-performance, data-driven approach to analyzing and solving the root causes of business problems Statement-of-cash-flows methodA method of cash budgeting that is organized along the lines of the statement of cash flows. statistical process control (SPC)the use of control techniques that are based on the theory that a process has natural variations in it over time, but uncommon variations step methoda process of service department cost allocation Successful Efforts MethodA method of accounting for petroleum exploration and development Target costingA method of costing that is concerned with managing whole-of-life costs of a product/service during the product design phase – the difference between target price (to achieve market share) and the target profit margin. target costinga method of determining what the cost of a Temporal methodUnder this currency translation method, the choice of exchange rate depends on the Variable costingA method of costing in which only variable production costs are treated as product costs and in which all fixed (production and non-production) costs are treated as period costs. variable costinga cost accumulation and reporting method Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |