Definition: The term service costing or operating costing refers to the computation of the total operational cost incurred on each unit of the intangible product. These intangible products or services can be either in the form of internal services that are carried out by industries as supporting activities for the manufacturing of goods; or external services that are offered as … [Read more...] about Service Costing
Cost Sheet
Definition: A cost sheet is a statement which represents the various costs incurred at different stages of business operations, in a tabular format, to determine the total cost or expenditure made by the organization and the cost which is incurred on each unit of a product or service in a particular period. The cost sheet of a business organization provides an insight into … [Read more...] about Cost Sheet
Cash Book
Definition: A cash book is that unique book of accounts which fulfils the objective of both, a journal and a ledger. Like a journal, it is the first book which records all the cash transactions of the business; and it also acts as a subsidiary book to post all the cash transactions, similar to a cash account in the ledger. It can be broken down into two words, i.e., 'cash' … [Read more...] about Cash Book
Journal Entries
Definition: Journal refers to a 'book' or 'diary' and entry means noting down of something. On combining these two words, we get 'journal entries' which can be explained as a book meant for the original recording of the day to day business transactions or activities in a systematic order. The formal step by step entry of these business activities in a journal is termed as … [Read more...] about Journal Entries
Commercial Paper (CP)
Definition: A commercial paper (CP) can be viewed as an unsecured, short-term and negotiable money market instrument which is issued by the companies with good credit rating to acquire quick working capital to meet its short-term liabilities like paying off bills or maintaining inventory. The issuing company promises to repay the borrowed sum on or before the mentioned maturity … [Read more...] about Commercial Paper (CP)
Industrial Disputes
Definition: An industrial dispute can be viewed as friction or disagreement between two or more parties involved, due to the difference in their perceptions, opinions, mindsets, attitudes and values. In an organization, the parties engage in such disputes can be: Employer and employee; employee and employee or; employer and employer. On a massive level, conflicts … [Read more...] about Industrial Disputes
Approaches to Industrial Relations
Definition: Industrial relations is that part of human resource management which studies the formal relationship of the workers with the administration and the employers and ensuring a proper mechanism to manage the industrial disputes and conflicts. In the present scenario, the relationship between the employer and the employees have changed to a great extent what it used … [Read more...] about Approaches to Industrial Relations
Industrial Relations
Definition: Industrial relations is that field of study which analyzes the relationship among the management and the employees of an organization at the workplace and also provides a mechanism to settle down the various industrial disputes. This concept evolved in the late 19th century because of the industrial revolutions. It is made up of the following two … [Read more...] about Industrial Relations
Max Weber’s Bureaucracy Theory
Definition: The bureaucratic management theory, introduced by Max Weber stated that to manage an organization efficiently, it is essential to have a clear line of authority along with proper rules, procedures and regulations for controlling each business operation. Bureaucracy refers to the possessing of control over a group of people or activities through knowledge, power or … [Read more...] about Max Weber’s Bureaucracy Theory
Scientific Management
Definition: Scientific management concept was developed by F.W. Taylor who implemented the scientific techniques such as observation, logic, analysis and combination to study the working conditions and management at the floor level in the factories and production units. The concept of scientific management was given to improve the productivity, efficiency and effectiveness … [Read more...] about Scientific Management