What is Business Process Re engineering?
Jennifer edwards Business Process Reengineering is a process of making an organization more efficient and effective by redesigning the workflows in order to optimize end to end processes and to remove process…
Cost of Credit
The cost of credit is a financial calculation that is done to find out the cost of the discount that a business is going to offer on an early payment.…
Liquidity Index
The liquidity index is a financial indicator that is used to indicate the number of days required by a company to convert its trade receivables and inventory into cash. The…
Writing Off a Bad Debt
Whenever a customer invoice is tagged as uncollectible this means that the amount receivable is not going to be received and is converted into a bad debt. If an invoice…
Time Value of Money
The concept of time value of money states that the cash received today at this point of time is more valuable as compared to the cash received in future at…
Variable Annuity
Variable Annuity is a kind of retirement annuity as it offers death benefits and other integrated features associated with death benefits. Most of the insurance companies offer variable annuities under…
Annuity Due
Annuity Due can be explained as a series of payments that posses certain characteristics as compared to the other form of the payments. The first characteristic of this kind of…
Back flush Accounting
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…
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…
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…
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…
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…
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…