A comprehensive listing of all the accounting terms used on the website. Page 2 gao05734sp budget glossary terms and definitions account a separate financial reporting unit for budget, management, andor accounting purposes. Other comprehensive basis of accounting ocboa consistent accounting basis other than generally accepted accounting principles gaap used for financial reporting. If youre looking for an overview of the most important terms and principles for. I also explain each accounting term in detail and give examples of each, so you can understand the. The scope of management accounting is broader than that of cost accounting. Managerial cost accounting resources due to increased interest in fasab cost accounting guidance, staff has assembled selected managerial cost accounting resources on this webpage. In another example, the cost of factory rent and rates may be allocated to products based on the amount of factory space that their production takes up. Consolidated glossary this glossary is a compilation of all terms presented in statements of federal financial accounting standards. The definition of one word or phrase may depend on understanding another word or phrase defined elsewhere in the reference list.
Governmental accounting terms glossary auditorcontroller. The measure of normal cost under this method for each cost accounting period is the present value of the units of benefit deemed to be credited to employees for service in that period. Thats why we created an online accounting terms glossary to help you. Sets out financial accounting standards for leases in the us. Cost accounting common terms and definitions accounting. Cost unit is generally adopted on the basis of convenience and practice in the industry concerned. Thus, one should weigh the costs of complying with another accounting principle against the extra accuracy gained.
However knowing what these terms mean is critical to understanding the performance of your business. Thats because cost accounting has many terms that are not used in other areas of accounting financial accounting and management accounting, to name a few. The total money, time, and resources associated with a purchase or activity. Construction project costs are typically broken down into labor, benefits, materials, subcontract, equipment, rentals, and overhead. Management accounting utilises the principles and practices of. In management accounting, a measurement in monetary terms, of the amount of resources used for some purpose. It is also a term used as an abbreviation for doubleentry bookkeeping, a particular form of bookkeeping. Glossary of accounting terms and definitions wealth how. Accounting accounting is a difficult term to define. Assumptions and terminology s t u d y cvp is based on various. Cost accounting system manufacturing cost accounts. Glossary of financial accounting terms pearson education. Understanding the terminology will help you understand the concepts and their relevance to you, and more importantly, they.
As cloud accounting providers, we feel strongly about eliminating accounting jargon. Presentation of an item on this page does not alter its standing in the gaap hierarchy and is not intended as an endorsement of the views expressed by the authors of. Financial accounting standards board accounting for leases. Important terms and principles cost accountants should know. Thus cost represents the amount of resources given up to obtain a given object or objective. The council of the association of accountancy bodies in west africa abwa recognised the difficulty of students when preparing for the accounting technicians scheme west africa. Fixed costs are, at any time, the inevitable costs that must be paid regardless of the level. Glossary bookkeeping bookkeeping is the process of recording financial transactions in the books of a business accounting records. Budget a plan showing a companys objectives and proposed ways of attaining the objectives. The literature indicated that traditional cost accounting information is largely inaccurate for the purpose of decisionmaking, prompting a call for innovation in cost accounting innes and.
Budgeting the coordination of financial and nonfinancial planning to satisfy an organizations goals budget variance the difference between an actual cost incurred or revenue earned at a certain. Statement of change in owners equity financial statement of a business that reports the changes that have occurred in the owners equity. Method assigned to each cost accounting period and are valued as they accrue i. My accounting course accounting and business dictionary explains 1,000s of accounting terms in plain english. Cost terms, concepts and classifications klplus cpe course this basiclevel online tutorial is designed to provide you with a working knowledge of the terms and concepts you will need for the more advanced topics covered in later modules. Here is big red books definition of common accounting terminology. The expense recognized in writing off the cost of a plant or machine over its useful life, giving consideration to wear and tear, obsolescence. Phone 2015680249 glossary of utility finance and accounting terms used in our seminars letters in parenthesis, preceding the definition, identify the sources used in compiling the glossary. Gambia 2004 1 accounting principles and definitions. An aggregation of actions performed within an organization that is useful for purposes. A record that holds the results of financial transactions. It builds on the environmental accounting glossary prepared in 20 by wassim youssef, volunteer of the said division. Glossary of utility finance and accounting terms used in our seminars letters in parenthesis, preceding the definition, identify the sources used in compiling the glossary. In other words, it can be said that the management accounting can be considered as an extension of cost accounting.
Includes all costs that do not vary with activity for an accounting period. A lease for a noncancellable primary period, defined under ssap 21 as one that transfers substantially all the risks and rewards of ownership of an asset to the lessee. The figure calculated in a trading account to represent the cost of goods sold in that accounting period. Cost accounting page 5 module i introduction cost accounting is a branch of accounting and has been developed due to limitations of financial accounting. Knowledge of the business, accounting and financial studies. Gao05734sp a glossary of terms used in the federal. S t u d y iv cost accounting t e x t s t u d y v table of contents. An area of accounting that deals with external reporting to parties outside the firm. Glossary of cost accounting terms established in sffas 4. Accounting terminology guide over 1,000 accounting and. Page 1 of 5 glossary of cost accounting terms established in sffas 4, managerial cost accounting concepts and standards for the federal government activity the actual work task or step performed in producing and delivering products and services. This edition of the world bank has been revised and expanded by the terminology unit in the languages services division of the world bank in collaboration with the. Major types of budgets are 1 master budget, 2 responsibility budget, and 3 capital budget. At the end of this booklet is a glossary of all the relevant accounting terms that will help you understand the science of accounting.
In accounting, all costs associated with the acquisition of an asset. Many accountants will tell you that cost accounting is the most difficult accounting subject to learn. Financial accounting is primarily concerned with record keeping directed towards the preparation of profit and loss account and balance sheet. According to the terminology used by the institute of. Overview of cost definitions and methodologies by james ruth. Accounting dictionary is a continually expanding collection of over accountancy terms, abbreviations and definitions. Some accounts do not directly affect the budget but are used purely for accounting purposes.
The total structure of records and procedures which discover, record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, balanced account groups, and organizational components. The bureau is publically sharing it in an effort to further the accessibility of financial information to limited english proficient persons. Defense acquisition acronyms and terms provides an extensive list of acronyms and abbreviations appendix a and glossary of terms appendix b commonly. Cost price paid to acquire, produce, or maintain goods and services.
Bookkeeping and accountancy deal with maintaining record of all the transactions that a businessindividual makes. Accounting terminology can be quite a mouthful and hard to remember, especially if you dont have much prior experience with financial or management accounting. The volume point of sales at which revenues and costs are equal. Glossary of ifrs terms term description standard a ccounting policies the speci. Examples include an income tax basis or a cash basis. A cost accounting system is a continuous and systematic cost accounting process, which may be designed to accumulate and assign costs to a variety of objects routinely or as desired by management. All budgetary transactions are recorded in accounts, but not all accounts are budgetary in nature. The wealthhow article below provides a glossary of accounting terms and definitions that are most commonlyused. Although knowledge in the field of fullcost accounting is evolving rapidly, a new terminology is emerging in modern economics. Since then the manual has been changed and updated as required.
In compliance with this section, the accounting standards and procedures for counties manual was issued in 1961. Cost accounting an area of accounting that involves measuring, recording, and reporting product costs. The cfpbs glossary of english spanish financial terms. This accounting glossary isnt an ordinary dictionary that you find in the back of one of your accounting textbooks. Revised march 30, 2010 3 amortization gradual and periodic reduction of any amount, such as the periodic writedown of a bond premium, the cost of an intangible asset or periodic payment of mortgages or other debt. Cost effective the most costeffective program would be the one whose costbene. Cost accounting system of recording job costs and performing services in aggregate and detail. Englishfrench and frenchenglish french, english abstract.
This glossary of common financial terms was created and is used by the bureau for translating consumer education materials from english to spanish. The kudoz open glossary is a browsable glossary of terms translated via the kudoz term help network. My accounting dictionary is written completely in everyday, nonaccounting language, so you can understand it. The process by which an organizations cost is collected, assigned, and interpreted. Activitybased costing a cost accounting method that.