Date of record

What is meant by the date of record? Date of record is the date the stockholders are entitled to receive the dividend as per issue.

Dividends in Arrears

What is meant by dividends in arrears? The accumulated unpaid dividends on the cumulative preferred stock from prior years are called dividends in arrears.

Denomination term definition

What is meant by the term “denomination”? The denomination is the amount on which the required interest payment is always calculated (also called face value, maturity value or par value).

Discount term definition

What is meant by the term “discount”? Discount is the selling or pledging of a customer’s note receivable to the bank at some point prior to the note’s maturity date.

Dividends Definition

Dividends – Definition Dividends are a return to stockholders of some of the assets of the corporation that have increased as a result of the profits earned. Corporate income is the principal means by which retained earnings are increased. Other than losses, dividends are the principal cause of retained earnings decreases. Dividends, which represent distribution …

Read more

Debit Definition

What is meant by the term Debit? The term debit can be defined as an entry on the left side of the ledger account representing an increase in an asset account and a decrease in an equity account.

Differential cost

Definition A differential cost is a difference between the costs of alternative courses of action on an item-by-item basis. It assists decision makers while making a choice between different alternatives.

Debit Note

Definition If a buyer returns goods to the seller which are bought on credit, the seller’s account must be debited by the buyer and send this information to the seller through a note. This note is known as “Debit Note”.

Debtors or account receivable

Definition The persons to whom the goods or services have been sold on credit and from whom the amount is receivable are called “Debtors”. Debtors are also termed as Accounts Receivable. Example John Sold goods to Harry on credit for $500, Harry is a Debtor of John.


Definition Cash or goods taken away by the proprietor from the business for his personal use are called his drawings. Example Mr. John withdrew from business cash $2000 and goods worth of $500 for his personal use. His total drawings have amounted to $2,500.

Dual-rate method.

Dual-rate method is a method of allocating costs in which two cost functions are used. Typically, the two functions are a fixed-cost function and a variable-cost function.


Dual-pricing is a transfer-pricing approach that uses two separate transfer-pricing methods to price each inter-division transaction.

Double-declining balance (DDB)

Double-declining balance (DDB) is a form of accelerated depreciation in which first-year depreciation is twice the amount of straight-line depreciation when a zero terminal disposal price is assumed.

Direct materials yield variance

Direct materials yield variance is the variance used to analyze effect of changes in material yield on materials cost. Formula Direct materials yield variance can be Computed as: (Actual units of material inputs used – Standard units of material inputs allowed for actual outputs) x (Standard average price per unit of material inputs).

Direct materials cost.

The acquisition costs of all materials that are identified as part of the cost object and that may be traced to the cost object in an economically feasible way is called direct material cost.

Direct material mix variance

Direct material mix variance is the variance used to analyze effect of changes in the mix of materials used on direct materials cost. Formula Direct material mix variance can be computed as: [(Actual material mix percentage – Standard material mix percentage) x (Actual total units of material inputs used)] x (Standard individual price per unit …

Read more

Direct labor yield variance

Definition Direct labor yield variance is the Variance used to analyze effect of changes in labor yield on labor cost. Direct labor yield variance can be computed as: Formula (Actual units of labor inputs used – allowed for actual outputs) x (Standard average price per unit of labor input).

Direct labor mix variance

Variance used to analyze effect of changed in the mix of labor on erect labor cost. Computed as: [(Actual labor mix Standard labor mix percentage – Standard labor mix percentage) x (Actual total units of labor inputs used)] x (Standard individual price per unit of labor input – Standard average price per unit of labor …

Read more

Direct allocation method

Direct allocation method is a  method of allocating service department costs that ignores any service rendered one service department to another; it allocates each service departments total cost directly to the production department. Also called direct method.

Denominator volume

The preselected production volume level used to set a budgeted fixed-factory-overhead rate applying costs to inventory. Also called denominator activity or denominator level.

Decision table

Decision table is a summary of the events, actions, contemplated probabilities, and outcomes. Also called a payoff table or payoff matrix.


The freedom to make decisions. Total decentralization in an organization means minimum constraints and maximum freedom for managers to an organization.