Selling Price Variance
Jennifer edwards 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…
Accounting Procedures: The Payroll Procedure
The payroll is associated with employ and the staff and this involve a complete flow of assigning error free payroll to the employees. The payroll procedure is a complex procedure…
Accounting Procedures: The fixed Asset recognition procedure
The fixed asset recognition procedure is used in accounting to recognize and categorize fixed assets at an early stage. It is important to recognize fixed assets in early period of…
Accounting Procedures: Credit Granting Procedure
It is a procedure of granting credit to the customers on their request. This is a complete procedure that ensures one thing that a firm’s credit is not granted to…
The Cost Method of Investment Accounting
The cost method of investment accounting is a method of calculating cost of investment made by an investor. There are two general rules of cost method of investment accounting one…
Full Disclosure Principle of Accounting
The full disclosure principle states that while designing and maintaining financial statements of an entity you should add all the information that is necessary to develop an understanding regarding the…
The Economic Entity Principle of Accounting
The economic entity principle of accounting is a principle that gives us guideline about storing the financial information of a given entity. This principle states that the financial information of…
Impairment Accounting
Impairment accounting is the branch of accounting that deals with the cost of the fixed assets and also referred as impairment accounting of fixed assets. The impairment of the fixed…
Units of Production Depreciation
Units of Production Depreciation The units of production method of depreciation calculate depreciation by using the concept that the depreciation expense of fixed asset is directly proportional to the usage…
Sum of Year‘s Digit Depreciation Method
This is the method of calculating the acceleration of depreciation that means that how fast an asset is being depreciated. With the help of this method most of the depreciation…
Production Budget
Production budget can be defined as the estimation or calculation of total number of units of products that must be manufactured in that budgeting period in order to achieve estimated…