They will also be able to sign up to a newsletter which will give them further information as the expansion is rolled out. In addition, parents are expected to see an expansion in the availability of childcare in their local area before and after school, between 8am and 6pm. This is also known as ‘wraparound… Continue reading What Are T Accounts? Definition and Example
A depreciation journal entry records the current depreciation amount as a debit to a Depreciation expense account and a credit to an Accumulated Depreciation contra-asset account. Accumulated depreciation is the total amount a company depreciates its assets, while depreciation expense is the amount a company’s assets are depreciated for a single period. Accumulated depreciation is… Continue reading Accumulated Depreciation Definition, Example, Sample
One website offers prices for scrap copper, steel, aluminum and other metals. In some cases, the prices depend on the item the metal comes from. For aluminum, the price is different if it comes from extrusions, cans, siding, and wheels. Aluminum cans may only cost $0.33 a pound, while aluminum wheels may fetch up to… Continue reading What is scrap value?
By knowing at what level sales are sufficient to cover fixed expenses is critical, but companies want to be able to make a profit and can use this break-even analysis to help them. For example, if the economy is in a recession, your sales might drop. If sales drop, then you may risk not selling… Continue reading Break-Even Point BEP Definition, Formula and Calculation Explained
One of the significant benefits of FOB shipping points is cost savings for buyers. Since the buyer assumes ownership and responsibility for the goods once they leave the seller’s designated shipping point, they can arrange to ship using their preferred carrier or negotiate better rates. This allows buyers to save budget on shipping costs and… Continue reading What Are the Costs for Free on Board FOB Freights?
For instance, the average salary of a Certified Public Accountant (CPA) in the United States is around $70,000 per year. Add to that a tax specialist, whose average salary is approximately $80,000 per year, and perhaps a financial analyst at $85,000 per year. You’re looking at a total annual salary cost of $235,000, not including… Continue reading Outsourced Accounting Services for Business Growth & Firms QXAS USA
Unlike the Financial Accounting Standards Board (FASB)-driven financial accounting, cost accounting need only concern itself with insider eyes and internal purposes. Management can analyze information based on criteria that it specifically values, which guides how prices are set, resources are distributed, capital is raised, and risks are assumed. Another drawback of the Cost Principle is that… Continue reading What is Cost Principle? Definition and Examples
When confirming accounts payable, your company’s auditors must take a sample of the accounts payable. These majorly represent your business’s purchasing or borrowing activities. Furthermore, special emphasis must be given to accounts payable representing larger transactions. Once the sample invoices are reviewed, each of them must be confirmed and verified. You must also review and… Continue reading Accounts Payable Journal Entry Definition & Examples
Accrued interest agreements have fees calculated based on the current account balance and rate. It reduces the expenses or cash outflow of the company, but it could not be considered the revenues under the accounting principle. For example, if you have a loan with a 6% simple interest rate, you would pay back the original… Continue reading Accounting for Purchase Discounts Entry, Example, and More
The loss on each sale of the Solo product was not discovered until the company did the calculations for the ABC method, because the sales of the other products were strong enough for the company to retain a total gross profit. The Activity-Based Costing (ABC) model is used to get a sound estimate of the… Continue reading Activity-Based Costing