Accounting Tools

JANUARY 25, 2025

Since this machine is set up 100 times per year, the first stage allocation is to calculate that each machine setup (an activity) is assigned a $500 charge (calculated as the $50,000 setup cost divided by 100 setups).

Cost Accounting 40

Cost Accounting Accounting Accounting 40

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

APRIL 7, 2024

Related AccountingTools Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals What is Not Included in Manufacturing Overhead? Thus, the costs of such items as corporate salaries, audit and legal fees, and bad debts are not included in manufacturing overhead.

Cost Accounting 75

Cost Accounting Financial Statements Financial Reporting Auditing 75

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 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.

Cost Accounting 75

Cost Accounting Tax Accounting Accounting 75

Counto

DECEMBER 16, 2024

Cost Accounting Services Cost accounting helps businesses understand the costs associated with production and other operations. Key Functions: Cost Analysis : Tracking production costs and operational expenses. Discover a smarter way to outsource your accounting with confidence.

Financial Records 52

Financial Records Budgeting Accounting Accounting 52

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

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

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

JUNE 22, 2024

This list usually includes the following accounts: Direct materials Merchandise Direct labor Factory overhead Freight in and freight out Related AccountingTools Courses Accounting for Inventory Cost Accounting Fundamentals The list may also include commission expense, since this cost usually varies with sales.

General Ledger 98

General Ledger Accruals Cost Accounting Invoicing 98

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

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

JULY 7, 2024

If so, it does not really have any cost, since its cost would have been incurred anyways as a result of the production of the main product. All of the cost concepts noted here are critical elements of many types of management decisions. Thus, selling a by-product at any price is profitable; no price is too low.

Cost Accounting 75

Cost Accounting Financial Analysis Financial Statements 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

Counto

NOVEMBER 27, 2024

Example : After a transparent pricing experience, a small business is more likely to trust the service provider with future accounting or financial needs, knowing they operate with honesty. Effective Planning: Understand Future Costs Account migration doesn’t end with the initial transfer of data.

Budgeting 52

Budgeting Accounting Accounting Tax 52

Accounting Tools

JUNE 8, 2023

Related Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals Job costing involves the detailed accumulation of production costs attributable to specific units or groups of units. Costs are likely to be accumulated at the department level, and no lower within the organization.

Record Keeping 75

Record Keeping Cost Accounting Billing Accounting 75

Accounting Tools

FEBRUARY 15, 2024

Total cost is less applicable to short-term decision making, where it is more likely that only variable costs will be considered. The alternative definitions for total cost are noted below. In general, it is the most comprehensive view of invested funds.

Cost Accounting 72

Cost Accounting Financial Reporting Budgeting Tax 72

Accounting Tools

JULY 28, 2023

Related Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals What is a Plantwide Overhead Rate? The plantwide overhead rate is a single overhead rate that a company uses to allocate all of its manufacturing overhead costs to products or cost objects.

Financial Statements 75

Financial Statements Cost Accounting Accounting Accounting 75

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. Related Article How to Calculate a Labor Rate

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

JUNE 11, 2023

Related Courses Accountants' Guidebook Bookkeeping Guidebook Cost Accounting Fundamentals What is the Cost of Sales? The cost of sales is the accumulated total of all costs used to create a product or service, which has been sold.

Cost Accounting 75

Cost Accounting Accounts Payable Accounts Payable Bookkeeping 75

Accounting Tools

AUGUST 5, 2023

Related Courses Cost Accounting Fundamentals What is Marginal Costing? Marginal cost is the cost of one additional unit of output. The concept is used to determine the optimum production quantity for a company, where it costs the least amount to produce additional units.

Financial Reporting 75

Financial Reporting Cost Accounting Accounting Accounting 75

Accounting Tools

OCTOBER 22, 2023

Related Courses Cost Accounting Fundamentals What is Variable Cost? A variable cost is a cost that varies in relation to either production volume or the amount of services provided. If no production or services are provided, then there should be no variable costs.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

JULY 8, 2024

Overhead Cost Assignment Factory overhead costs must be aggregated into cost pools and then allocated to the number of units produced during a reporting period , which increases the recorded cost of inventory. The number of cost pools should be minimized to reduce the amount of allocation work by the accountant.

Accounting 76

Accounting Accounting General Ledger Cost Accounting 76

Accounting Tools

MAY 12, 2024

Related AccountingTools Courses Cost Accounting Fundamentals Financial Analysis Related Articles Allowable Costs Committed Cost Direct Cost Incremental Cost Unavoidable Cost

Financial Analysis 75

Financial Analysis Cost Accounting Tax Accounting 75

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. This can represent a substantial cost reduction over the data collection required for a job costing system.

Collections 75

Collections Cost Accounting Accounting Accounting 75

Accounting Tools

JULY 12, 2024

Thus, the typical cost of labor includes a premium of usually 20% to 35% for additional tax and benefit payments, of which medical insurance is usually the largest component. In a few situations, the cost of labor can be reduced by shifting the cost directly to customers.

Invoicing 75

Invoicing Cost Accounting Payroll Tax 75

Accounting Tools

APRIL 24, 2024

The same approach works in reverse, where the variable component of the cost will be eliminated when the activity level declines below a certain amount. Consequently, it is best to concentrate on fully understanding a small number of these costs very well, rather than having a cursory knowledge of the cost behavior of a large number of them.

Cost Accounting 75

Cost Accounting Budgeting Billing Accounting 75

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

Accounting Tools

MAY 19, 2023

Related Courses Cost Accounting Fundamentals Cost Management Guidebook What is a Deferred Cost? A deferred cost is a cost that you have already incurred, but which will not be charged to expense until a later reporting period. In the meantime, it appears on the balance sheet as an asset.

Cost Accounting 74

Cost Accounting Financial Reporting Accounting Accounting 74

Accounting Tools

JUNE 14, 2023

Related Courses Cost Accounting Fundamentals Cost Management Guidebook What is a Discretionary Fixed Cost? A discretionary fixed cost is an expenditure for a period-specific cost or a fixed asset , which can be eliminated or reduced without having an immediate impact on the reported profitability of a business.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

JUNE 7, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What are Fixed Costs? A fixed cost is a cost that does not increase or decrease in conjunction with any activities. Thus, a business will incur fixed costs even when there is no business activity. What are Variable Costs?

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

OCTOBER 19, 2024

Related Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals Variable Overhead Spending Variance The variable overhead spending variance is the difference between the actual spending and the budgeted rate of spending on variable overhead.

Budgeting 75

Budgeting Financial Statements Cost Accounting Billing 75

Accounting Tools

JULY 14, 2024

A more accurate approach would be to allocate costs based on cubic feet of storage space consumed. When deciding upon which cost allocation method to use, keep in mind that none of these methods will achieve a close relationship between the allocated costs and the cost objects to which they have been applied.

Financial Statements 75

Financial Statements Cost Accounting Accounting Accounting 75

Accounting Tools

JULY 21, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals Inventory Management Many business dictionaries state that there is no difference between the terms work in process and work in progress , so it is possible to interchange the terms. Related Articles Ending Work-in-Process Formula Work-in-Process Accounting

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

JUNE 7, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is a Cost Allocation? Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs.

Cost Accounting 75

Cost Accounting Financial Reporting Tax Accounting 75

Accounting Tools

OCTOBER 7, 2023

Related Courses Accountants’ Guidebook Bookkeeping Guidebook Cost Accounting Fundamentals What is a Deferred Expense? A deferred expense is a cost that has already been incurred, but which has not yet been consumed. Related Articles Incurred Cost Unexpired Cost

Financial Statements 75

Financial Statements Cost Accounting Financial Reporting Accounting Software 75

Accounting Tools

NOVEMBER 1, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamental What is an Expense Allocation? An expense allocation occurs when indirect costs are assigned to cost objects. A cost object is anything for which a cost is compiled.

Financial Statements 75

Financial Statements Cost Accounting Financial Reporting Accounting 75