See Also: Chart of Accounts (COA) Problems in Chart of Accounts Design Complex Number for SGA Expenses Role of a Company Back Office Standard Chart of Accounts In accounting, a standard chart of accounts is a numbered list of the accounts that comprise a company’s general ledger. Furthermore, the company chart of accounts is basically a filing system for categorizing all of
What is Work in Progress? In accounting, a work in progress (WIP) account is an inventory account that includes goods that are in the process of being produced but are not yet finished. This account represents the costs of resources used but not yet turned into completed products. Also refer to the work in progress
See Also: Retail Markup Example Margin vs Markup Buyer Bargaining Power (one of Porter’s Five Forces) Supplier Power (one of Porter’s Five Forces) Marking-to-Market Free Cash Flow Analysis Retail Markup Definition Retail markup is the difference between the price of a product and the cost of that product. Retail markup percentage is the retail markup
See Also: Product Pricing Strategies Product Costs vs Period Costs In accounting, all costs incurred by a company can be categorized as either product costs or period costs. The two types of costs are recorded differently. Product costs are applied to the products the company produces and sells. Product costs refer to all costs incurred
See also: Standard Chart of Accounts Chart of Accounts (COA) Complex COA Number for SGA Expenses Example Chart of Accounts for Selling General and Administrative Time Saving Tip for Filing Vendor Invoices Problems in Chart of Accounts Design Too Many General Ledger Accounts Often when using QuickBooks or Peachtree accounting software the number of general
See Also: Periodic Inventory System Just In Time Inventory System How to Manage Inventory Days Inventory Outstanding Analysis Inventory Turnover Analysis Supply Chain and Logistics Perpetual Inventory System A perpetual inventory system is a continuously updated inventory management system. This type of system uses technology such as bar coding, computerized production operations, and perpetual inventory
See Also: Operating Income Example EBITDA Definition Net Income Free Cash Flow Operating Profit Margin Ratio Time Value of Money (TVM) What is operating income? Earnings before interest and tax, also know as operating income (EBIT), is defined as a measure of a company’s profit from ordinary operations, excluding interest and tax. EBIT is also
See Also: Segmenting Customers for Profit Activity Based Management Standard Costing Process Costing Activity Based Cost Allocation Implementing Activity Based Costing All of us have used cost allocation, the process of assigning common costs to ending inventory and cost of goods sold (COGS), as part of our Financial Services offerings since it is required by
See Also: Raise Inventory Turnover Ratio Economic Order Quantity LIFO vs FIFO Financial Ratios Days Inventory Outstanding Inventory Turnover Ratio Analysis Definition Inventory turnover ratio, defined as how many times the entire inventory of a company has been sold during an accounting period, is a major factor to success in any business that holds inventory.
See also: Just in Time Inventory System Perpetual Inventory System Inventory Turnover Ratio Analysis Days Inventory Outstanding LIFO vs FIFO Inventoriable Costs In accounting, inventoriable costs refer to all costs incurred to obtain or produce the end-products. Apply these costs to the products the company produces and sells. The cost of raw materials, direct labor,
See Also: Accounting Principles Point of Sale Method (POS) Collection Method Percentage of Completion Method Completed Contract Method Installment Sales Definition The Installment Method of revenue recognition under the revenue principle deals with sales that require periodic payments over a specified time period usually established within a contract called the installment sales contract. Installment Sales
See Also: Deferred Income Tax Deferrals Income Statement Accounting Principles Generally Accepted Accounting Principles (GAAP) Deferred Revenue Definition Deferred revenue is considered a liability to companies that contain them. It occurs because a customer has paid for a product or service, but the company has yet to provide the product or perform the service. Deferred
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