Back flush Accounting
Jennifer edwards Back flush accounting is a type of accounting where the accounting procedures are not conducted until the final manufacturing of the product is not completed. After the completion of manufacturing…
Beginning Inventory Explained
Beginning Inventory can be defined as the recorded cost of the inventory at the beginning of every accounting period. In other words beginning inventory can be defined as the cost…
Mixed Cost
Mixed cost is a cost that contains both the fixed cost and a variable cost component. It is important to understand the mixed cost so that one can find out…
Ending Work in Process
Work in Process is a kind of inventory in which all the goods are near to be finished but still some work needed to be done to count these goods…
What is an Inventory Change?
The aggregate difference between the all types of inventory of the last reporting period and the current reporting period is called inventory change. In most of the companies where the…
How to calculate Efficiency
The efficiency is the comparison of the output to the input of a given operation. This means that what is the ratio between the given output and the input of…
How to Account Warranties
Every business has a warranty or claim policy under which a business promises to its customers that it will repair or replace the defective or broken goods within a certain…
Deferred Compensation
Deferred compensation is a type of employee compensation that depends upon the performance of the employee. The arrangement of deferred compensation depends upon the time period for which it is…
Asset Retirement Obligation
Asset retirement obligation can be defined as a liability that has to be fulfilled by a firm on the retirement of certain fixed asset. The most common example of asset…
Standard Costing
Standard costing is an accounting technique where the actual cost is substituted with standard costs or expected cost in the accounting records. After recording the costs the next step is…
Selling Price Variance
The selling price variance can be defined as the variance between the anticipated selling price and the actual selling price of the product that result in alteration of the expected…
Labor Rate Variance
Labor rate variance is a calculation that is related to the labor rate decided by the management. it can be defined as the difference between the standard labor rate and…
Contribution Margin per Unit
As we know that contribution margin is a financial calculation that is calculated by subtracting all the variable costs from the revenues. The contribution margin is calculated to pay it…
Types of Capacity
The capacity of a work centre, a machine or equipment can be defined as the amount of work done by that particular item. The capacity of a particular item can…
The Closing Procedure in Accounting
The closing procedure in accounting is carried at the end of each and every accounting period. In this procedure all the journal entries are flushed that were being used to…
Convertible Securities
Convertible securities are the securities that can be converted by the holder of the security in the equity of the business entity from which the security is purchased. Convertible security…
The Equity Method of Joint Venture Accounting
A joint venture is a type of business or investment that is conducted by more than one investor that acts as business partners to each other. The degree of the…
How to conduct Stock Accounting
Stock can be defined as the share of the investor in the equity of the business that allows the investor to claim over the profits and the assets of the…