Technical terms
Terms that have been specifically mentioned and agreed by both parties at the time the contract is made. They can either be oral or in writing.
When an anticipated cost is higher than its actual cost, or when anticipated revenue is lower than actual revenue.
First In, First Out; the oldest inventory items are recorded as sold first. The cost associated with the inventory that was purchased first is the cost expe...
Goals of a finance function are business support service, lowest costs, and effective control of the environment.
The final trial balance at the end of an accounting period from which the financial statements are derived. This final trial balance includes all of the jou...
A cost that does not change with an increase or decrease in the amount of good or services produced or sold. Expenses that have to be paid by a company, ind...
A budget that adjusts or flexes for changes in the volume of activity.
Contains all the accounts for recording transactions relating to a company’s assets, liabilities, owner’s equity, revenue, and expenses.
The belief that a company will stay in business in the future.
Record of goods received at the point of receipt. This record is used to confirm all goods have been received and often compared to a purchase order before ...