Half-Year Convention Definition
Sana Ahmed Half-Year Convention Definition: A requirement under the Modified Accelerated Cost Recovery System (MACRS) that allows a company to take only a half year's depreciation in the first and last years…
Gross Profit Analysis Solved Problems
Gross Profit Analysis Solved Problems: Learning Objective: Calculate sales price variance, sales volume variance, cost price variance, cost volume variance, sales mix variance, and final sales volume variance. Problem 1:…
Gross Profit Analysis-Questions and Answers
Gross Profit Analysis-Questions and Answers: Questions: Why is the gross profit figure significant? What causes changes in the gross profit? Explain "product mix" or "sales mix." By what methods can…
Gross Profit Analysis Based on the Previous Year’s Figures
Gross Profit Analysis Based on the Previous Year's Figures: As the basis for illustrating the gross profit analysis using the previous year's figures, the following gross profit section of a…
Gross Profit (GP) Analysis Case Study
Gross Profit (GP) Analysis Case Study: Gross Profit analysis of time sharing computer programs: The senior system analysis of Tyrene, Inc. Bob Canedy, developed in his spare time three unique…
Gross Profit Analysis Based on Budgets and Standard Costs
Gross Profit Analysis Based on Budgets and Standard Costs: As the basis for illustrating the analysis of gross profit using budgets and standard costs, three financial statements for a company…
Generally Accepted Accounting Principles (GAAP)
Generally Accepted Accounting Principles (GAAP): Generally accepted accounting principles (GAAP) are those principles that have substantial authoritative support. The AICPA's code of professional conduct requires that members prepare financial statements…
General Environment Definition
General Environment Definition: Broad external conditions that may affect the organization.
Joint Venture Accounting Questions and Answers
Joint Venture Accounting Questions and Answers: Learning Objectives: Answers of some important joint venture questions. Theoretical Questions: Define a "joint venture". What are the different methods of recording transactions relating…
Future Value and Present Value Tables
Future Value and Present Value Tables Future Value Tables: Table 1: Future Value of $1 Table 2: Future Value of Ordinary Annuity (Annuity in Arrear - End of Period Payments)…
Further Classification of Labor Costs
Further Classification of Labor Costs: Learning Objective of the Article: Properly classify labor costs associated with idle time, overtime and fringe benefits. Idle time, overtime, and fringe benefits associated with…
Functions of Accounting (accounting functions)
Functions of Accounting (accounting functions): Learning Objectives: What are the important functions of accounting? Record Keeping Function: The primary function of accounting is to keep a systematic record of financial…
Full Costing Definition
Full Costing Definition: Full costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the…
Form of Ledger and Method of Posting
Form of Ledger and Method of Posting: Form of Ledger: One account usually occupies one page in the ledger. But if the account is big one it may extend to…
Cost Flow and Journal Entries–Process Costing System
Cost Flow and Journal Entries--Process Costing System: Materials: Materials are drawn from the storeroom using a material requisition form. Materials can be added in any department, although it is not…
Flexible Budget Definition
Flexible Budget Definition: A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to…
Flexible Budget Definition
Flexible Budget Definition: A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to…
Fixed Overhead Efficiency Variance
Fixed Overhead Efficiency Variance: Learning Objective of the article: Define and explain fixed overhead efficiency variance. How is fixed overhead efficiency variance calculated? What are the reasons / causes of…