Bookkeeping

Examples of variable costs include the cost of raw materials, cost of labour, shipping etc. The more the business produces the more it will spend on raw materials and labour, and that is the reason why this cost varies with an increase in production. Contributions margin ratio (also known as gross profit ratio) is one […]

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It represents the accumulated costs of ongoing construction projects that are not yet completed. These costs can include materials, labor, equipment, and overhead expenses, such as insurance and taxes. While both CIP cost of debt formula and WIP (Work in Progress) accounting deal with ongoing projects, they serve different purposes. CIP is used for fixed-asset […]

As a result, backflush accounting results in recording very little in a company’s Work in Process accounts. Traditional costing methods often require detailed tracking of raw materials, work-in-progress, and finished goods. In contrast, backflush costing reduces the need for backflush costing such granular tracking by consolidating inventory records. Intrinsic Value of a Stock: What It […]

It is the total depreciation that is reduced from the value of an asset, which is therefore recorded on the credit side to offset the balance trade payables of the asset. Understanding accumulated depreciation is crucial for accurate financial reporting and analysis. This account reflects the wear and tear of assets over time, impacting both […]

This Orlando accounting firm has operated in Central Florida since 1971, solidifying itself as a staple in the virtual accountant community. The firm’s partners alone bring well over 100 years in accounting and tax experience, and six qualified support staff members round out the solid team at Newman, Seland & Oppenheimer. McDirmit Davis and Company […]