Jennifer edwards In accounting burden rate can be defined as the allocation rate at which the indirect costs are allocated to the direct cost of that of inventory and labor. Burden costs…
Net Realizable Value
The net realizable value is a valuation technique that is used to value inventory. With the help of this technique you tend to calculate the market value of the inventory…
Expense Allocation
Expense allocation is a process of assigning indirect costs to the cost objects within the business. A cost object is an entity or any other thing with the help of…
What are Stock Repurchases?
Stock Repurchases is a process of buying back shares from the investors of the business. There are a number of reasons due to which a company undergoes repurchase process. Sometimes…
Earned Capital
The net income of a business is sometimes given the name of the earned capital and may be referred to the retained earnings of a business that is left with…
Negative Retained Earnings
As we all know that retained earnings are the earnings that are left with the business after paying dividends to all the share holders from the profit earned by the…
How to Calculate Average Accounts Payable
Accounts payable is one of the most important financial figure in a firm’s accounting and is used to calculate a number of other financial figures such as current ratio, working…
Transaction Error Rate
It is quite common to observe transaction error while conducting the financial transactions. The cost of correcting these errors is far greater than the cost of prohibiting these errors initially.…
Return on Capital Employed
The return on the capital employed is a financial indicator that is used to measure the proportion of adjusted earnings of the business to the amount of capital and debt…
Accounts Receivable Collection Period
The accounts receivable collection period can be defined as a period that is required to collect the accounts receivables for a business. In order to calculate the accounts receivable collection…
Accounts Payable Days
Accounts payable days is the measure of the number of days that a company needs to pay its suppliers. If the number of days required for the payment increase from…
Computerized Accounting
A computerized accounting system is a automated accounting system where the use of computer technology is used to manage the accounting processes of a business. A computerized accounting system is…
Accounting System
An accounting system is a type of computerized information system that helps a business in maintaining and managing its accounts and financial transactions. A business has a very complex accounting…
Difference between Bill of Exchange and Cheque
A cheque is a kind of bill of exchange that is drawn on a specific bank or bank and is payable only on demand. There is a considerable difference between…
Information Analysis
Information can be defined as the processed form of data. When data is collected, inspected, cleaned and filtered it is transformed into the information. Information can be used by the…
Market Value Added
The market value added is a concept in accounting that deals with the difference between the market value of the business and the capital invested to run the business. If…
Business in Liquidation
Business in liquidation is a business that is in the closing process or the owner is winding up his business due to loss or some other reason. While liquidating a…
Total Quality Management
Total quality management can be defined as a management practices or set of efforts that are applied to the organization in order to improve the organization and increase its efficiency.…