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

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

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

MARCH 28, 2023

Related Courses Accounting for Inventory Bookkeeping Guidebook Cost Accounting Fundamentals What is Accounting Cost? Accounting cost is the recorded cost of an activity. An accounting cost is recorded in the ledgers of a business, so the cost appears in an entity's financial statements.

Accounting 40

Accounting Accounting Financial Statements Cost Accounting 40

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 Training can usually be curtailed for extended periods of time, though doing so can reduce the level of employee expertise.

Financial Analysis 75

Financial Analysis Cost Accounting Tax Accounting 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. This calls for the use of a cost allocation system, consistently applied.

Cost Accounting 75

Cost Accounting Tax Accounting Accounting 75

Accounting Tools

JUNE 3, 2024

Proration in Overhead Cost Allocations Proration can refer to the allocation of under- or over-allocated overhead costs among the work-in-process , finished goods , and cost of goods sold accounts at the end of an accounting period. Related AccountingTools Courses Cost Accounting Fundamentals Corporate Finance

Corporate Finance 40

Corporate Finance Cost Accounting Accounting Accounting 40

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

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. As such, these costs are recorded as part of the inventory asset.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

JULY 13, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Full Costing? Full costing is used to determine the complete and entire cost of something. The concept is most commonly used for recording the full cost of inventory in the financial statements.

Financial Reporting 40

Financial Reporting Cost Accounting Financial Statements Collections 40

Accounting Tools

JUNE 9, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Job Costing? Job costing involves the accumulation of the costs of materials, labor, and overhead for a specific job. An alternative use is to see if any excess costs incurred can be billed to a customer.

Cost Accounting 40

Cost Accounting Billing Invoicing Budgeting 40

Accounting Tools

JULY 19, 2023

Related Courses Cost Accounting Fundamentals What is a Material Variance? Material variance has two definitions, one relating to direct materials and the other to the size of a variance. They are noted below.

Financial Statements 40

Financial Statements Cost Accounting Accounting Accounting 40

Accounting Tools

JUNE 3, 2024

Related AccountingTools Course Cost Accounting Fundamentals Related Articles Direct Labor Cost How to Calculate a Labor Rate Standard Labor Rate The Difference Between Direct and Indirect Labor

Payroll 40

Payroll Budgeting Cost Accounting Tax 40

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 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

APRIL 28, 2024

Once the split-off point has been reached, any subsequent costs incurred, such as for product finishing, are classified as separable costs. In accounting, the split-off point should be clearly defined, so that all separable costs incurred thereafter can be separately tracked and assigned to specific products.

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

MAY 3, 2024

Related AccountingTools Courses Activity-Based Costing Cost Accounting Fundamentals Related Article Manufacturing Support Costs This department sources goods and services for the manufacturing operation, including contract negotiations and order monitoring.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

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

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. It defers this cost at the point of payment (in April) in the prepaid rent asset account.

Financial Statements 75

Financial Statements Cost Accounting Financial Reporting Accounting Software 75

Accounting Tools

MAY 16, 2024

This cost becomes the transferred-in cost of the Engines department, which is the starting cost before the costs of the engine and installation labor are included. Related AccountingTools Course Cost Accounting Fundamentals Related Articles Equivalent Units of Production Process Costing System

Cost Accounting 40

Cost Accounting Accounting Accounting 40

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

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

JUNE 5, 2024

Related AccountingTools Courses Accounting for Inventory Cost Accounting Fundamentals Example of Average Total Cost A business manufactures widgets. During the last month, it incurred $50,000 of fixed costs and $100,000 of variable costs, while producing 75,000 widgets.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 40

Accounting Tools

JUNE 6, 2024

The form is used by the organization's cost accounting system to charge the cost of the parts to a job, as well as to track inventory levels. When inventory is being sent to a department, the form is the basis for a charge to that department, and so is considered a source document of the accounting system.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

FEBRUARY 10, 2024

Finally, a business might incur quality inspection costs as part of its batch processing, which involves inspecting units both during and after a production run, to see if they meet the producer’s quality standards. If so, the total batch cost is aggregated and divided by the number of units produced to arrive at a unit cost.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

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.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

APRIL 29, 2024

In some cases, they will find that the real problem is an incorrectly-derived standard cost that generates unfavorable variances even when there is no underlying problem. Having a complete system of standard costs in place makes it easier to compare actual results to expectations, and is the foundation for budget vs. actual reporting.

Budgeting 40

Budgeting Cost Accounting Billing Accounting 40

Accounting Tools

MAY 13, 2024

This means that some service department allocations may not be charged to expense until several months later, when the related goods are sold and charged to the cost of goods sold account. Bills the production department for labor and equipment consumed during the maintenance of machinery. Information technology.

Purchase Order 40

Purchase Order Billing Cost Accounting Budgeting 40

Accounting Tools

APRIL 20, 2023

Related Courses Cost Accounting Fundamentals What is Full Cost? Full cost is the aggregation of all costs associated with a product or other cost object. These costs include both the direct costs and indirect costs of production, but do not include selling, general and administrative expenses.

Cost Accounting 75

Cost Accounting Accounting Accounting 75

Accounting Tools

OCTOBER 23, 2023

Related Courses Business Insurance Fundamentals Fair Value Accounting Mergers and Acquisitions What is Replacement Cost? Replacement cost is the price that an entity would pay to replace an existing asset at current market prices with a similar asset. Related Articles Accounting Cost Actual Cost Explicit Cost Relevant Cost

Budgeting 40

Budgeting Accounting Accounting Cost Accounting 40

Accounting Tools

MAY 5, 2024

These include the costs incurred for a supplier or customer. The allocation is useful for tracking the cost of dealing with another entity. Related AccountingTools Courses Activity-Based Costing Cost Accounting Fundamentals Related Articles First Stage Allocation Stage 1 Allocation

Customer Service 40

Customer Service Cost Accounting Accounting Accounting 40

Accounting Tools

MARCH 5, 2024

Accounting for Shrinkage The cost of the inventory lost to shrinkage is typically charged directly to the cost of goods sold. Related AccountingTools Courses Accounting for Inventory Cost Accounting Fundamentals Related Articles Abnormal Spoilage Normal Spoilage Scrap

Cost Accounting 40

Cost Accounting Accounting Accounting 40

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

MARCH 26, 2024

Another example of an unavoidable cost is a long-term purchase commitment, such as a 20-year deal by a utility to purchase coal from a mining company. Related AccountingTools Course Cost Accounting Fundamentals Related Articles Avoidable Cost Committed Cost Fixed Cost Legacy Cost Non-Controllable Cost

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

MAY 1, 2024

Based on this information, the stage 1 allocation is to divide the number of resets into the total cost, to derive a cost per machine reset of $40. Related AccountingTools Courses Activity-Based Costing Cost Accounting Fundamentals Related Articles First Stage Allocation Stage 2 Allocation

Computation 40

Computation Cost Accounting Accounting Accounting 40

Accounting Tools

APRIL 6, 2024

For example, if a business pays a salary to its marketing manager, this cost is immediately classified as a current period expense, and so is charged to expense as incurred. Related AccountingTools Course Cost Accounting Fundamentals Related Articles Committed Cost Explicit Cost Incurred Cost Legacy Cost Sunk Cost

Cost Accounting 40

Cost Accounting Accounting Accounting 40