Average Inventory Calculation
Jennifer edwards Average inventory is the total inventory that is held by a business for a longer period of time other than the comparison of the inventory from the last month. In…
Comparing LIFO and FIFO methods of Inventory
LIFO and FIFO method of inventory is used to calculate the cost of the present inventory and to find out the actual ending inventory. FIFO and LIFO have their own…
The Gross Profit Method of Inventory Accounting
The gross profit method can be used to calculate the average inventory at the end of a particular accounting period. The basic use of gross profit method of inventory accounting…
Acid Test Ratio
The acid test ratio is a quick indicator of the financial position of a firm. This ratio shows weather a firm has adequate amount of short term assets required to…
Annual Return over an Investment
The annual rate of return is the return that an investment provides a business over a period of one year or annually. The annual return is shown in a time…
Activity Based Costing
Activity based costing is a costing technique that is based on the cost calculations of all the activities that happen while running a business operation. The activity based costing use…
Acquisition Accounting
Acquisition accounting is a formula or a method of showing the financial position of a company a purchasing company on the consolidated statement of the company. The term acquisition accounting…
Active Asset
An active asset is an asset in the business or a firm that is used on regular biases and is used as an active part of a business operation. Active…
Activity Cost Driver
Activity cost driver is a factor or a certain indicator that affects the certain activities within a business and also affects the cost related to those activities. As the name…
Activity Based Management
Activity based management can be defined as a method where all the activities within in a business are identified and evaluated using the costing method called activity based costing. In…
Activity Ratios
What are Activity Ratios? Activity ratio is the ratio or the measure of the ability of an organization to convert the accounts of the balance sheet into revenues. Activity ratio…
Accumulated Fund
Accumulated fund is the fund that is accumulated over time by non-profit organizations such as NGOs and other such organizations. Accumulated fund is not used to by operational or other…
Managing Cash Flows in a Better way
Cash can be considered as the life and soul of the business and works like blood that keeps a business alive. For a small and medium sized business cash flow…
What are Wage Expenses?
As the name indicates wage expenses are the expenses associated with the wages of the non-manufacturing employees. Wage expense is delivered to the employees on the hourly biases or in…
Back End Ratio
Back end ratio is the calculation of the part of the income of an individual or a business that is used to pay the debts. From an individual point of…
Residual Income
Residual income can be defined as the income that is left with a business or an individual after paying all the expenses, debt and mortgages from the net income. Most…
Unit of Production Depreciation
This is a method of calculating depreciation in which depreciation is calculated on the biases of fixed rate on per unit of the product produce in production line. This method…
Impact of using different types of Depreciation Methods
There are different types of depreciation methods such as straight line depreciation, reducing balance depreciation, sum of the year digit depreciation and units of activity depreciation. Each method has its…