Accounting Tools

JULY 8, 2024

How to Account for a Manufacturing Business The accounting for a manufacturing business deals with inventory valuation and the cost of goods sold. The number of cost pools should be minimized to reduce the amount of allocation work by the accountant. The concepts are expanded upon below.

Accounting 76

Accounting Accounting General Ledger Cost Accounting 76

Accounting Tools

OCTOBER 11, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook Introduction to Accounting Basics Accounting is the practice of recording and reporting on business transactions. This means setting up accounts in which financial information is stored. Examples are accounts receivable and inventory.

Accounting 75

Accounting Accounting Record Keeping Purchase Order 75

Accounting Tools

APRIL 6, 2024

What Does the Accounting Department Do? The accounting department is responsible for a large number of administrative functions within an organization. Though considered "back office" activities, these functions are essential to the proper operation of a business. They are as follows: Credit.

Accounting 75

Accounting Accounting Financial Statements Budgeting 75

Accounting Tools

DECEMBER 19, 2023

Accountancy is the practice of recording, classifying, and reporting on business transactions for a business. The key accountancy tasks are noted below. There are also a number of business transactions that are non-repetitive in nature, and so require the use of journal entries to record them in the accounting records.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

JUNE 20, 2023

Related Courses Bookkeeping Guidebook CFO Guidebook New Controller Guidebook What are the Types of Accounting? There are several types of accounting that range from auditing to the preparation of tax returns. Accountants tend to specialize in one of these fields, which leads to the different career tracks noted below.

Accounting 75

Accounting Accounting Financial Statements Auditing 75

Accounting Tools

NOVEMBER 1, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook New Controller Guidebook An accountant is a person who records business transactions on behalf of an organization, reports on company performance to management, and issues financial statements. Management reports are issued to the management team.

General Ledger 75

General Ledger Accounting Accounting Financial Statements 75

Accounting Tools

AUGUST 7, 2024

What are Managerial Accounting Formulas? The managerial accountant reports on the operational results of a business. In this role, one must use a number of accounting formulas to discern performance levels. In the following paragraphs, we note several of the most useful managerial accounting formulas.

Accounting 40

Accounting Accounting Financial Statements Cost Accounting 40

Accounting Tools

OCTOBER 28, 2023

Related Courses Accounting for Retirement Benefits How to Account for a Pension The accounting for pensions can be quite complex, especially in regard to defined benefit plans. The Types of Pension Costs There are a number of costs associated with defined benefit plans that may at first appear arcane.

Accounting 75

Accounting Accounting Cost Accounting 75

Accounting Tools

MARCH 11, 2024

What is an Accounting System? An accounting system is a set of accounting processes with integrated procedures and controls. Though an accounting system can be entirely paper-based, this situation is usually only found in quite small businesses.

Accounting 40

Accounting Accounting Accounting Software Billing 40

Accounting Tools

JULY 19, 2024

The cost cannot be traced to the cost objects within the building, such as a production line, since the line could be shuttered but the insurance expense would still be incurred as long as the building was owned by the company.

Cost Accounting 98

Cost Accounting Accounting Accounting 98

Accounting Tools

OCTOBER 27, 2023

Related Courses Bookkeeping Guidebook New Controller Guidebook What is Account Analysis? Account analysis involves an examination of the detailed line items comprising an account. Without proper account analysis, these accounts tend to build up amounts that should have been purged at some point in the past.

Accounting 40

Accounting Accounting Reconciling Account Reconciliation 40

Accounting Tools

APRIL 7, 2024

Related AccountingTools Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals What is Not Included in Manufacturing Overhead? Manufacturing overhead does not include any of the selling or administrative functions of a business. it is also possible to use multiple allocation methods.

Cost Accounting 75

Cost Accounting Financial Statements Financial Reporting Auditing 75

Accounting Tools

OCTOBER 25, 2023

Related Courses Cost Accounting Fundamentals What is the Accounting for Variances? There is usually no need to account for variances. Accounting for Inventory Variances The exception is when transactions are initially recorded at their standard costs in the accounting records.

General Ledger 40

General Ledger Accounting Accounting Budgeting 40

Accounting Tools

OCTOBER 19, 2024

Presentation of Variable Overhead Variable overhead is typically aggregated into the cost of goods sold, and so is not shown separately in the income statement. Variable Overhead Variances Variable overhead is analyzed with two variances, which are noted below.

Budgeting 75

Budgeting Financial Statements Cost Accounting Billing 75

Accounting Tools

SEPTEMBER 7, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory What is a Cost of Goods Manufactured Schedule? The cost of goods manufactured schedule is used to calculate the cost of all items produced during a reporting period.

Financial Statements 75

Financial Statements Cost Accounting Auditing Financial Accounting 75

Accounting Tools

JULY 27, 2023

Related Courses Credit and Collection Guidebook Bookkeeping Guidebook Budgeting CFO Guidebook Cost Accounting Fundamentals New Controller Guidebook Payables Management Payroll Management Project Accounting Someone wanting to enter the accounting field can choose to train for a number of possible positions.

General Ledger 40

General Ledger Accounting Accounting Financial Statements 40

Accounting Tools

NOVEMBER 1, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory Direct material is the physical items built into a product. The direct materials concept is used in cost accounting , where this cost is separately classified in several types of financial analysis.

Cost Accounting 75

Cost Accounting Financial Analysis Budgeting Auditing 75

Accounting Tools

JULY 7, 2024

Related AccountingTools Courses Cost Accounting Fundamentals Effective Decision-Making Financial Analysis Allocated Costs Overhead costs are allocated to manufactured goods only because it is required by the accounting standards (for the production of financial statements ).

Financial Analysis 75

Financial Analysis Cost Accounting Financial Statements Accounting 75

Accounting Tools

OCTOBER 5, 2023

Related Courses Accountants’ Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook The general ledger clerk position is accountable for creating journal entries and assembling supporting documentation, as well as for tracking the contents of accounts , creating portions of the financial statements , and writing related disclosures.

General Ledger 40

General Ledger Financial Statements Accounting Accounting 40

Accounting Tools

JUNE 22, 2024

Formula for the Cost of Goods Sold The cost of goods sold is calculated by aggregating the period-specific expense listed in each of the general ledger accounts that are designated as being associated with the cost of goods sold. The following exhibit shows where the cost of goods sold appears in the income statement.

General Ledger 98

General Ledger Accruals Cost Accounting Invoicing 98

Accounting Tools

FEBRUARY 15, 2024

What is Total Cost? Total cost is the total expenditure incurred to produce some type of output. From an accounting perspective, the total cost concept is more applicable to financial reporting, where overhead costs must be assigned to certain assets. The alternative definitions for total cost are noted below.

Cost Accounting 72

Cost Accounting Financial Reporting Budgeting Tax 72

Accounting Tools

AUGUST 11, 2024

The classic example of a process costing environment is a petroleum refinery, where it is impossible to track the cost of a specific unit of oil as it moves through the refinery. Direct Materials Costs Using either a periodic or perpetual inventory system, we determine the amount of direct materials used during the period.

Collections 75

Collections Cost Accounting Accounting Accounting 75

Accounting Tools

JULY 7, 2024

This situation can arise when the cost accountant does not want to track very many cost drivers , preferring instead to use a more simplified system. The use of a weighted cost driver can be very cost-effective, since less data collection work is required.

Cost Accounting 40

Cost Accounting Collections Accounting Accounting 40

Accounting Tools

JULY 27, 2023

Related Courses Activity-Based Costing Activity-Based Management Cost Accounting Fundamentals What is Costing? Costing is any system for assigning costs to an element of a business. This calls for the use of a cost allocation system, consistently applied.

Cost Accounting 75

Cost Accounting Tax Accounting Accounting 75

Accounting Tools

JUNE 20, 2024

Managers may also prefer to focus on the impact of a product on a bottleneck operation, which means that their main focus is on the direct materials cost of a product and the time it spends in the bottleneck operation. It is charged to the cost of goods sold as soon as the product is sold, and appears as an expense on the income statement.

Cost Accounting 75

Cost Accounting Financial Statements Financial Reporting Payroll 75

Accounting Tools

NOVEMBER 1, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Factory Cost? Factory cost refers to the total cost required to manufacture goods. This concept is the basis for several cost accounting analyses.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

APRIL 25, 2024

Related AccountingTools Courses Activity-Based Costing Cost Accounting Fundamentals Example of a Downward Demand Spiral Tsunami Products manufactures several types of shower heads. After a detailed analysis of margins, the company’s cost accountant recommends to management that the dual shower head model be cancelled.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

AUGUST 3, 2023

Related Courses Accountants' Guidebook Bookkeeper Education Bundle Bookkeeping Guidebook What is the Timeliness of Accounting Information? The timeliness of accounting information refers to the provision of information to users quickly enough for them to take action.

Financial Statements 40

Financial Statements Accounting Accounting Bookkeeping 40

Accounting Tools

APRIL 17, 2024

Related AccountingTools Course Cost Accounting Fundamentals Comparing Direct and Indirect Labor The difference between direct labor and indirect labor is that only labor involved in the hands-on production of goods and services is considered to be direct labor. The accounting is noted below.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

OCTOBER 23, 2023

Related Courses Cost Accounting Fundamentals What is the Relative Sales Value Method? The relative sales value method is a technique used to allocate joint costs based on the prices at which products will be sold. However, product margins may still vary, depending on the costs incurred by each product after the allocation point.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

JUNE 12, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis Operations Management How to Calculate Efficiency The efficiency equation is a comparison of the work output from an operation to the work input to that same operation. The concept has been most thoroughly formalized in cost accounting , as noted below.

Financial Analysis 75

Financial Analysis Cost Accounting Accounting Accounting 75

Accounting Tools

FEBRUARY 5, 2024

Related AccountingTools Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals Related Articles Accounting for Manufacturing Businesses Fixed Manufacturing Overhead Applied Manufacturing Cost Accounting Manufacturing Overhead Manufacturing Overhead Rate

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

JUNE 21, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What are Conversion Costs? Conversion costs are those production costs required to convert raw materials into completed products. Therefore, the conversion cost per unit for the month was $6.80

Cost Accounting 75

Cost Accounting Payroll Tax Accounting 75

Accounting Tools

JULY 12, 2024

The cost of labor may be subdivided into the cost of labor related to the production of goods (known as the cost of direct labor ) and the cost of labor related to all other activities (known as the cost of indirect labor ). Allocated from total w/c cost Medical insurance 100.00 of wages Medicare tax 14.50

Invoicing 75

Invoicing Cost Accounting Payroll Tax 75

Accounting Tools

JULY 11, 2024

The cost to conduct the painting operation is then allocated to each unit in the batch. Related AccountingTools Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals Related Articles Batch Cost Batch-Level Cost

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

AUGUST 10, 2024

When a company uses standard costing , it derives a standard amount of overhead cost that should be incurred in an accounting period , and applies it to cost objects (usually produced goods). By doing so, a case can be made to charge all overhead costs to expense as incurred.

Data Entry 72

Data Entry Cost Accounting Accounting Accounting 72

Accounting Tools

JULY 11, 2024

Related AccountingTools Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory Direct Materials Use in Throughput Analysis Direct materials is an important concept in throughput analysis , where throughput is the revenue generated by a product sale, less all totally variable costs.

Billing 73

Billing Cost Accounting Auditing Accounting 73