This formula demonstrates that total variable cost fluctuates based on the number of units produced, while variable cost per unit remains constant. The volume of sales at which the fixed…
This formula demonstrates that total variable cost fluctuates based on the number of units produced, while variable cost per unit remains constant. The volume of sales at which the fixed…
They represent a percentage or rate that is applied to an appropriate cost driver, such as labor hours or machine hours, to assign overhead costs to products. The predetermined overhead…
You can take certain deductions that aren’t mentioned elsewhere on your tax return. Some examples include gambling losses and claim of right income repayments, which is income you paid in…
A seller would need to debit a sales returns and allowances account and credit an asset account. This journal entry carries over to the income statement as a reduction in…
It can be very easy to think you are making plenty of income and not spending that much when you aren’t tracking the actual numbers. Join over 25,000 US-based business…
For example, a low inventory turnover would imply that sales are low, the company is not selling its inventory, and there is a surplus. This could also be due to…
Managing depreciation can feel overwhelming for inexperienced accountants and bookkeepers. But in reality, once you’re familiar with depreciation and the different depreciation methods you can use, the process becomes much…
Nonprofits should have a clear method to allocate costs according to their programs, administrative expenses, and fundraising events, primarily to accurately report on an organization’s spending patterns. Nonprofits have daily…
