Bookkeeping

As an art, it involves creativity, customisation and individual’s behavioural relationship with money. It could also involve (to varying extents) education of minors on money related matters. Another scientific aspect of accounting is the use of generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS). These frameworks provide a standardized set of rules […]

The ratio of shortage cost to shortage plus excess cost is 0.67. The ratio of shortage cost to shortage plus excess cost is 0.8. The ratio of shortage cost to shortage plus excess cost is 0.5. Grocery Store Accounting The standard deviation of demand during lead time equals the daily standard deviation of demand times

Some sellers prefer not to break out the sales discount line item, in which case it is merged into the gross sales figure, resulting in only a net sales figure being presented. Sales discount refers to reduction in the amount due as a result of early payment, hence pertaining to cash discounts. In other words,

This is because they want to recognize the discount allowed (expense) in the same period of sales to be in accordance with the matching principle. A sales discount is a reduction taken by a customer from the invoiced price of goods or services, in exchange for early payment to the seller. The seller usually states

By calculating separate overhead rates for each department, a company can assign costs based on the actual resources each product consumes as it moves through the production process. This method is particularly beneficial for companies with diverse product lines or complex manufacturing processes, where a plantwide rate might obscure the true cost of production. A

This method assumes that all overhead costs incurred within a manufacturing plant are driven by the same factor – usually direct labor hours or machine hours. Since the factory has a relatively simple production process, the controller decides to implement a plantwide overhead rate that is allocated based on the number of direct labor hours.

Record electronic signatures for approvals and use the cloud-based document storage tool to keep everything you need one click away. You can also track and manage your construction projects with QuickBooks Online. Using the correct billing method for your construction company can make your journey to profitability that much easier. Understanding the different billing methods

Deltek ComputerEase understands that not every project works the same way. This is why it has flexible billion options, such as American https://www.facebook.com/BooksTimeInc/ Institute of Architects, time and materials and freeform billing. The software makes invoice routing easy and conveniently reconciles things with the GL when paid. Features, such as timecards, can be synced automatically

However, like any process or method, FIFO also has its drawbacks that pose challenges for many businesses. Understanding how FIFO differs from LIFO (Last In, First Out) inventory method will give you more in-depth knowledge on whether FIFO is suitable for your business or LIFO. Using FIFO, the 80 units sold are from the January

Not only is net income often higher under FIFO, but inventory is often larger as well. This article covers the LIFO method in detail, compares it with other inventory valuation methods, and explores how businesses apply it in practice. Advanced software and inventory management systems are available to record the entry and exit of goods.