ContentsOther Definitions Inventory is all the money that the system has invested in purchasing things which it intends to sell.” (chapter 8 The Goal) Other Definitions Inventory - Stock on hand; often divided between raw materials inventory, work-in-process , and finished goods inventory. (Lean Construction Institute Glossary) Inventory - “Inventory is both an asset and a liability. Too much inventory consumes Full Article…
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Financial Accounting
Financial Accounting is the generation of accounting information for external reporting. (see also Managerial Accounting) (Thomson Nelson; Managerial Accounting Glossary)
Expense
ContentsOther Definitions An expenditure which is chargeable against revenue during an accounting period. An expense results in the reduction of an asset. All expenditures are not expenses. For example, a company buys a truck. It trades one asset – cash – to acquire another asset. An expenditure has occurred but no expense is recorded. Only Full Article…
Earned Value Analysis
Analysis of project progress where the actual money budgeted and spent is compared to the value of the work achieved. (Wideman Comparative Glossary of Common Project Management Terms v2.1 )
Direct Job Costs
(aka Direct Project Costs) The costs directly attributable to a project, including all personnel, goods and/or services together with all their associated costs, but not including indirect project costs, such as any overhead and office costs incurred in support of the project. (Wideman Comparative Glossary of Common Project Management Terms v2.1)
Cost Accounting
Cost accounting is an organization’s internal method to measure efficiency. Since no one outside the organization uses such internal accounts for investment or other decisions, any methods that an organization finds helpful can be used. (From the Wikipedia definition of Throughput Accounting)
Capitalize
To capitalize means to record an expenditure on the balance sheet as an asset, to be amortized over the future. The opposite is to expense. For example, research expenditures can be capitalized or expensed. If expensed, they are charged against income when the expenditure occurs. If capitalized, the expenditure is charged against income over a Full Article…
Capital Expenditure
ContentsOther Definitions The cost of an asset, including the cost to put it in place. Capital expenditure for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it was acquired. (http://www.foundation.csulb.edu/fndgrant/sections/GLFEB97.HTM) Other Full Article…
Balance Sheet
A balance sheet is a financial “snapshot” of your business at a given date in time. It includes your assets and liabilities and tells you your business’s net worth. Also called a statement of financial position, a balance sheet is a financial “snapshot” of your business at a given date in time. It lists your Full Article…