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

APRIL 4, 2023

Related Courses Cost Accounting Fundamentals Managerial accounting involves collecting, analyzing, and reporting information about the operations and finances of a business. The functions of managerial accounting include the following: Margin analysis. Capital budgeting analysis.

Accounting 75

Accounting Accounting Financial Statements Financial Reporting 75

Accounting Tools

SEPTEMBER 24, 2023

What is an Accounting Department? The accounting department is part of the corporate overhead group of an organization. It is responsible for billings, payroll , cost accounting , the production of financial statements , paying suppliers , and similar activities.

Accounting 40

Accounting Accounting Financial Analysis Financial Statements 40

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 Payroll 40

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

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

NOVEMBER 24, 2023

The volume element is that portion of the variance attributable to changes in sales volume or unit usage from a standard or budgeted amount, while the rate element is the difference between the actual price paid and a standard or budgeted price. Related Articles Accounting for Variances Cost Variance Analysis

Budgeting 75

Budgeting Cost Accounting Accounting Accounting 75

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 29, 2024

What is Standard Cost? A standard cost is a planned or budgeted cost. A standard cost is based on engineering designs and production methodologies, which can be attained under normal operating conditions. How are Standard Costs Used? Simplified job costing.

Budgeting 40

Budgeting Cost Accounting Billing Accounting 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.

Financial Analysis 75

Financial Analysis Cost Accounting Budgeting Auditing 75

Accounting Tools

MARCH 7, 2024

What is Estimated Cost? Estimated cost is the projection of the amount of costs that will be incurred to build a product or construct something. This amount is derived as part of the capital budgeting process for an internal project, or as part of a sales bid when attempting to sell to a customer.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Fun

OCTOBER 7, 2022

Profit – A chief executive who gives the accountant the bottom-line. Budget – A caged bird that can fly through the sound barrier. Book-keeping – Those books not given to the accountant. Fixed Cost – Size of required bribe. Cost Accounting – Size of accountants' bill.

Corporation Tax 40

Corporation Tax Accounting Accounting Budgeting 40

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.

Cost Accounting 75

Cost Accounting Budgeting Billing Accounting 75

Accounting Tools

MAY 13, 2024

A service department is a cost center that provides services to the rest of a company. The manager of a service department is responsible for keeping costs down, or meeting the costs stated in a budget. Bills the production department for labor and equipment consumed during the maintenance of machinery.

Purchase Order 40

Purchase Order Billing Cost Accounting Budgeting 40

SMB Accounting and Consulting

DECEMBER 21, 2022

Bookkeeping and accounting are often used interchangeably when describing a process of recording financial transactions for a business, but they are not the same functions. Accountants also support management in the implementation and monitoring of internal controls. Tax accountants specialize in IRS law and completion of tax returns.

Bookkeeping 52

Bookkeeping Financial Statements Accounting Accounting 52

Accounting Tools

DECEMBER 26, 2023

If the overhead rate is not included in the cost of a product, then there is a risk that the company will significantly underprice its products or services, and eventually go bankrupt. The result is fully-loaded inventory costs that it reports on its balance sheet.

Budgeting 75

Budgeting Cost Accounting Financial Reporting Accounting 75

Accounting Tools

JUNE 19, 2023

Related Courses Cost Accounting Fundamentals Effective Sales Management The Interpretation of Financial Statements What is Sales Mix? How to Calculate Sales Mix A cost accounting variance called sales mix variance is used to measure the difference in unit volumes in the actual sales mix from the planned sales mix.

Budgeting 75

Budgeting Financial Statements Cost Accounting Accounting 75

Accounting Tools

SEPTEMBER 24, 2023

Related Courses Budgeting Cost Accounting Fundamentals What is a Cost Function? A cost function is a formula used to predict the cost that will be experienced at a certain activity level.

Budgeting 40

Budgeting 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. Thus, the cost structure of an entire department can be said to be a mixed cost.

Budgeting 75

Budgeting Financial Analysis Cost Accounting Accounting 75

Accounting Tools

NOVEMBER 3, 2023

Related Courses Cost Accounting Fundamentals What is the Production Volume Variance? It is the difference between the actual number of units produced in a period and the budgeted number of units that should have been produced, multiplied by the budgeted overhead rate.

Budgeting 75

Budgeting Cost Accounting Accounting Accounting 75

Accounting Tools

FEBRUARY 11, 2024

When to Use Normal Costing Normal costing is designed to yield product costs that do not contain the sudden cost spikes that can occur when actual overhead costs are used; instead, it uses a smoother long-term estimated overhead rate.

Financial Reporting 74

Financial Reporting Cost Accounting Budgeting Accounting 74

Accounting Tools

APRIL 14, 2024

How to Calculate the Sales Volume Variance The sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit. What Causes a Sales Volume Variance? Trade restrictions. A foreign country may have altered its barriers to competition.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

JULY 12, 2023

Related Courses Cost Accounting Fundamentals What is an Unfavorable Variance? An unfavorable variance is encountered when an organization is comparing its actual results to a budget or standard. Unfavorable Revenue Variance When the amount of actual revenue is less than the standard or budgeted amount.

Budgeting 75

Budgeting Budgeting Manager Cost Accounting Accounting 75

Accounting Tools

APRIL 17, 2024

If the actual price is lower than the budgeted price, the result may actually be favorable to the company, as long as the price decline spurs demand to such an extent that the company generates an incremental profit as a result of the price decline.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

SEPTEMBER 28, 2023

Related Courses Accounting for Inventory Budgeting Cost Accounting Fundamentals What is an Actual Cost? Actual cost is the actual expenditure made to acquire an asset , which includes the supplier -invoiced expense, plus the costs to deliver, set up, and test the asset.

Financial Statements 40

Financial Statements Budgeting Cost Accounting Invoicing 40

Accounting Tools

APRIL 28, 2024

Related AccountingTools Courses Activity-Based Costing Cost Accounting Fundamentals Standard Costs and Variance Analysis Types of Standard Cost Variances There are many types of standard cost variances, including the following: Fixed overhead spending variance. Variable overhead spending variance.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

APRIL 11, 2023

Related Courses Budgeting Cost Accounting Fundamentals What is Cost Variance Analysis? Cost variance analysis is a control system that is designed to detect and correct variances from expected levels. A more refined approach is to split this difference into two elements, which are: Price variance.

Budgeting 75

Budgeting Cost Accounting Accounting Accounting 75

Accounting Tools

MAY 2, 2024

The costs of these departments may be charged to the using departments under the terms of an annual service agreement, so that all managers concerned can budget for the charges that will be billed. Accounting for a Service Center There are several ways to account for a service center. Allocated costs.

Billing 40

Billing Budgeting Cost Accounting Accounting 40

Accounting Tools

OCTOBER 23, 2023

Related Courses Cost Accounting Fundamentals What is the Fixed Overhead Spending Variance? The fixed overhead spending variance is the difference between the actual fixed overhead expense incurred and the budgeted fixed overhead expense.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

OCTOBER 21, 2023

Related Courses Cost Accounting Fundamentals What is a Cost Variance? A cost variance is the difference between the cost actually incurred and the budgeted or planned amount of cost that should have been incurred. This information is needed to monitor the costs incurred to produce goods.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

OCTOBER 11, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Actual Overhead? Actual overhead is the amount of indirect factory costs that are actually incurred by a business. Based on these estimates, the budgeting team establishes a standard overhead rate of $10 per unit produced.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

MARCH 11, 2024

Examples of an Exception Report As an example of an exception report, a report could point out those instances in which expenses were higher than the budget. Related AccountingTools Courses Cost Accounting Fundamentals Cost Management Guidebook Operations Management Related Articles Accounting for Variances Cost Control

Customer Service 40

Customer Service Budgeting Cost Accounting Accounting 40

Accounting Tools

APRIL 17, 2024

Understanding Life Cycle Costing The life cycle costing concept applies to multiple areas, including capital budgeting, procurement, engineering, and customer service. This analysis can lead to more robust products, once management realizes that sturdier products incur lower warranty and field servicing costs.

Customer Service 75

Customer Service Budgeting Financial Analysis Cost Accounting 75

Accounting Tools

MAY 16, 2023

Related Courses Cost Accounting Fundamentals What is a Non-Controllable Cost? A non-controllable cost is an expense that is not within the sphere of control of a manager. The cost may be controllable at a higher level of the organization, but it is not controllable from the perspective of the person in question.

Cost Accounting 40

Cost Accounting Budgeting Accounting Accounting 40

Accounting Tools

SEPTEMBER 25, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Extended Normal Costing? Extended normal costing derives production costs by multiplying budgeted or standard costs by the number of actual units produced.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

OCTOBER 1, 2023

Related Courses Cost Accounting Fundamentals What is an Incurred Cost? An incurred cost is a cost arising from the consumption of an asset or service, or from a loss that has been sustained. Related Articles Accounting Cost Actual Cost Committed Cost Consumed Cost Direct Cost Explicit Cost

Accruals 40

Accruals Financial Statements Budgeting Cost Accounting 40

Accounting Tools

NOVEMBER 20, 2023

For example, if you budget for sales to be $10,000 and actual sales are $8,000, variance analysis yields a difference of $2,000. To continue with the example, a complete analysis of the sales variance would be: "Sales during the month were $2,000 lower than the budget of $10,000. Variable overhead efficiency variance.

Budgeting 75

Budgeting Financial Analysis Billing Cost Accounting 75