Accounting Tools

DECEMBER 28, 2023

The cost of both types of indirect labor can be fully loaded with the costs of benefits and payroll taxes for financial analysis or cost accounting purposes, since these additional costs are closely associated with the indirect labor positions.

Financial Analysis 40

Financial Analysis Cost Accounting Payroll Tax 40

Accounting Tools

JULY 23, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis What is Cost? Cost is the expenditure required to create and sell products and services, or to acquire assets. When sold or consumed, a cost is charged to expense.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

JUNE 8, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals Financial Analysis What is a Mixed Cost? A mixed cost is a cost that contains both a fixed cost component and a variable cost component.

Budgeting 75

Budgeting Financial Analysis Cost Accounting Accounting 75

Accounting Tools

JULY 15, 2024

For example, if sales increase to a certain maximum level, management can either turn away any additional customer orders or accept the orders and incur the additional step fixed cost required to process the additional sales.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

OCTOBER 23, 2023

Related Courses Cost Accounting Fundamentals Cost Management Guidebook Financial Analysis What is a Committed Cost? A committed cost is an investment that a business entity has already made and cannot recover by any means, as well as obligations already made that the business cannot get out of.

Purchase Order 40

Purchase Order Financial Analysis Cost Accounting Accounting 40

Accounting Tools

APRIL 8, 2024

As noted in the example, the general strategic approach to dealing with avoidable costs is to commit to shorter time periods for any planned expenditures.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

JULY 21, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis What is Variable Expense? A variable expense is a cost that alters in conjunction with some type of activity. For example, the direct materials expense increases as sales increase. A business has few truly variable expenses.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

SEPTEMBER 3, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis What is a Sunk Cost? A sunk cost is a cost that an entity has incurred, and which it can no longer recover. Instead, only relevant costs should be considered.

Computation 75

Computation Financial Analysis Cost Accounting Accounting 75

Accounting Tools

JUNE 19, 2023

Related Courses Budgeting Financial Analysis Financial Forecasting and Modeling What is Relevant Range? Cost Accounting Relevant Range The assumed cost of a product, service, or activity is likely to be valid within a relevant range, and less valid outside of that range.

Financial Analysis 40

Financial Analysis Budgeting Cost Accounting Accounting 40

Accounting Tools

APRIL 17, 2024

This analysis can lead to more robust products, once management realizes that sturdier products incur lower warranty and field servicing costs. Related AccountingTools Courses Capital Budgeting Financial Analysis Purchasing Guidebook Related Article Lifetime Cost

Customer Service 75

Customer Service Budgeting Financial Analysis Cost Accounting 75

Accounting Tools

AUGUST 1, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals Financial Analysis What is Cost Behavior? Cost behavior is the manner in which expenses are impacted by changes in business activity.

Financial Analysis 40

Financial Analysis Cost Accounting Budgeting Accounting 40

Accounting Tools

JULY 9, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals What is a Fixed Cost? A fixed cost is a cost that does not increase or decrease in conjunction with any activities. The concept is used in financial analysis to find the breakeven point of a business, as well as to determine product pricing.

Accruals 40

Accruals Financial Analysis Cost Accounting Tax 40

Accounting Tools

APRIL 8, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis What is an Irrelevant Cost? An irrelevant cost is a cost that will not change as the result of a management decision. However, the same cost may be relevant to a different management decision.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

JULY 21, 2023

Related Courses Cost Accounting Guidebook Financial Analysis What is the Variable Cost Ratio? The variable cost ratio reveals the total amount of variable expenses incurred by a business, stated as a proportion of its net sales.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

NOVEMBER 20, 2023

This level of detailed variance analysis allows management to understand why fluctuations occur in its business, and what it can do to change the situation.

Budgeting 75

Budgeting Financial Analysis Billing Cost Accounting 75

Accounting Tools

JUNE 15, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis Managerial Economics What is Differential Cost? Differential cost is the difference between the cost of two alternative decisions, or of a change in output levels.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

NOVEMBER 8, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis Managerial Economics What is Marginal Cost? Marginal cost is the cost of one additional unit of output. It is calculated by dividing the change in manufacturing costs by the change in the quantity produced.

Financial Analysis 40

Financial Analysis Cost Accounting Accounting Accounting 40

Accounting Tools

MARCH 27, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis The Interpretation of Financial Statements What is the Cost Volume Formula? The cost volume formula is used to derive the total cost that will be incurred at certain production volumes.

Financial Analysis 40

Financial Analysis Financial Statements Budgeting Cost Accounting 40

Accounting Tools

MAY 18, 2024

For the purposes of this specific production-increase decision, then, the associated direct costs are: Related AccountingTools Courses Cost Accounting Fundamentals Financial Analysis When to Use Direct Costing Direct costing is of great use as an analysis tool.

Financial Statements 52

Financial Statements Financial Reporting Financial Analysis Cost Accounting 52

Accounting Tools

OCTOBER 24, 2023

Related Courses Cost Accounting Fundamentals Financial Analysis What is a Semi-Variable Cost? A semi-variable cost is a cost that contains both fixed cost and variable cost elements.

Financial Analysis 40

Financial Analysis Financial Statements Cost Accounting Budgeting 40

Accounting Tools

MAY 19, 2023

Related Courses Cost Accounting Fundamentals Cost Management Guidebook What is Cost Control? Cost control involves targeted expenditure reductions in order to increase profits. The following four steps are associated with cost control: Step 1.

Budgeting 40

Budgeting Financial Analysis Cost Accounting Accounting 40

Accounting Tools

JUNE 16, 2023

Related Courses Cost Accounting Guidebook Financial Analysis The Interpretation of Financial Statements What is the Weighted Average Contribution Margin? The weighted average contribution margin is the average amount that a group of products or services contribute to paying down the fixed costs of a business.

Financial Analysis 40

Financial Analysis Financial Statements Cost Accounting Accounting 40

Accounting Tools

JULY 26, 2023

Related Courses Cost Accounting Fundamentals What is Pro Rata? In accounting, this means revenues , expenses , assets , liabilities , or other items are proportionally allocated among participants. Pro rata refers to a proportional allocation. A participant may be an individual or an entity.

Billing 75

Billing Cost Accounting Accounting Accounting 75

IMA's Count Me

AUGUST 29, 2021

You know, when we first developed the CMA in 1972, there was more of a focus on cost accounting, but today the focus is more on a planning, analysis, decision support, and also technology and data analytics. Dennis (02:56): Yeah, the CMA program has evolved quite a bit over these, almost 50 years now.

Management Accounting 40

Management Accounting Accounting Accounting Financial Analysis 40