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. The cost of sales is calculated as beginning inventory + purchases - ending inventory.

Cost Accounting 75

Cost Accounting Accounts Payable Accounts Payable Bookkeeping 75

Accounting Tools

MAY 7, 2024

What is Flow of Costs? The flow of costs is the path taken by costs as they move through a business. The concept is most applicable to a manufacturing firm, where costs are first incurred when raw materials are purchased. When the goods are eventually sold, the costs move to the cost of goods sold.

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

JULY 10, 2023

Related Courses Accounting for Inventory How to Audit Inventory Inventory Management The Balance Sheet What is Finished Goods Inventory? Finished goods are goods that have been completed by the manufacturing process, or purchased in a completed form, but which have not yet been sold to customers.

Auditing 75

Auditing Tax Accounting Accounting 75

Accounting Tools

JULY 15, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory What is COGS? COGS is the cost of those goods associated with product sales. The cost of goods sold includes the costs of all items that are directly or indirectly associated with the production or purchase of goods that have been sold.

Payroll 75

Payroll Auditing Cost Accounting Tax 75

Accounting Tools

APRIL 28, 2024

What is a Standard Cost Variance? A standard cost variance is the difference between a standard cost and an actual cost. This variance is used to monitor the costs incurred by a business, with management taking action when a material negative variance is incurred. Purchase price variance.

Budgeting 40

Budgeting Cost Accounting Accounting Accounting 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

JULY 15, 2023

Related Courses Contract Management How to Audit Procurement Purchasing Guidebook What is Purchasing? Purchasing is the organized acquisition of goods and services on behalf of the buying entity. Purchasing activities are needed to ensure that needed items are obtained in a timely manner and at a reasonable cost.

Purchase Order 74

Purchase Order Accounts Payable Accounts Payable Auditing 74

Accounting Tools

MAY 13, 2024

In most cases, a high asset turnover ratio is considered good, since it implies that receivables are collected quickly, fixed assets are heavily utilized, and little excess inventory is kept on hand. To calculate inventory turnover, divide the ending inventory figure into the annualized cost of sales. What are Turnover Ratios?

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Accounting Tools

SEPTEMBER 24, 2023

Related Courses Accounting for Merchandising Operations What is the Cost of Goods Purchased? The cost of goods purchased is the net cost of merchandise acquired. With this information, one can then add a markup percentage to arrive at the price at which goods will be offered for sale.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 16, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory What are Inventoriable Costs? Inventoriable costs are included in the cost of a product. For a manufacturer, these costs include direct materials , direct labor , freight in , and manufacturing overhead.

Auditing 75

Auditing Cost Accounting Accounting Accounting 75

ProsperOps

DECEMBER 13, 2023

One effective solution for reducing AWS costs is to use Compute Savings Plans. In this article, you’ll learn more about Compute Savings Plans and how ProsperOps can help you optimize your cloud cost strategy. It can help you purchase and manage your Compute Savings Plan more efficiently.

Computation 130

Computation Budgeting Billing 130

Accounting Tools

APRIL 12, 2024

A requisition is a written request made by an employee for an organization's purchasing department to buy goods or services. This request specifies the exact item and quantity to be obtained, so that the purchasing staff can more efficiently source what is needed.

Auditing 40

Auditing Accounting 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

NOVEMBER 7, 2023

Related Courses Sales and Use Tax Accounting Sales tax is a state and local tax paid by the buyer of goods and services at the point of sale. Sales Taxes for Purchased Supplies In the second most common scenario, a company buys any number of items from its suppliers , such as office supplies, and pays a sales tax on these items.

Tax 75

Tax Collections Accounting Accounting 75

Accounting Tools

MAY 7, 2024

Measure depreciation, amortization, and depletion based on either the average current cost of the service potential of the underlying fixed assets or their lower recoverable amount during the usage period. Restate both inventory and the cost of goods sold, so that they are presented at current cost.

Financial Statements 40

Financial Statements Accounting Accounting Tax 40

Accounting Tools

MAY 13, 2024

The manufacturing overhead budget contains all manufacturing costs other than direct materials and direct labor. The information in this budget becomes part of the cost of goods sold line item in the master budget. The rent expense is a fixed cost , but does increase in the fourth quarter to reflect a scheduled rent increase.

Budgeting 40

Budgeting Payroll Tax 40

Accounting Tools

MARCH 25, 2024

What is Material Cost? Material cost is the cost of materials used to manufacture a product or provide a service. Excluded from the material cost is all indirect materials , such as cleaning supplies used in the production process. Material cost usually comprises the bulk of the costs incurred to manufacture a product.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

APRIL 14, 2024

What is the Purchase Price Variance? The purchase price variance is used to discover changes in the prices of goods and services. It can be used to spot instances in which the purchases being made differ in price from your planning levels.

Budgeting 40

Budgeting Collections Cost Accounting Accounting 40

Accounting Tools

DECEMBER 23, 2023

An expense is the cost incurred in order to generate revenue or obtain something. Examples of Expenses Common expenses are the cost of goods sold , rent expense, wages expense, fixed asset depreciation, and utilities expense. Reflects a purchase made on credit. Reflects a cash payment.

Accruals 75

Accruals Bookkeeping Accounts Payable Accounts Payable 75

Accounting Tools

JANUARY 26, 2024

In some cases, it will be necessary to conduct a systematic allocation of a cost across multiple reporting periods, such as when the purchase cost of a fixed asset is depreciated over several years. If there is no cause-and-effect relationship, then charge the cost to expense at once.

Accruals 75

Accruals Bookkeeping Financial Statements Invoicing 75

Accounting Tools

APRIL 6, 2024

What is Consumed Cost? A consumed cost is an expenditure for which the associated utility has been used. When a cost has been consumed, it is reclassified from being an asset to being an expense. This means that the cost is shifted from the balance sheet to the income statement.

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

MARCH 28, 2024

A LIFO liquidation occurs when an organization using the last in, first out concept to track its inventory costs uses up its oldest inventory layer. Under the LIFO method, the cost of the last inventory acquired is assigned to the first inventory used.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

APRIL 17, 2024

What is the Purchase Accounting Adjustment? Purchase accounting is the practice of revising the assets and liabilities of an acquired business to their fair values at the time of the acquisition. Examples of Purchase Accounting Adjustments There are several areas in which purchase accounting adjustments may arise.

Accounting 40

Accounting Accounting Financial Statements CPA 40

Accounting Tools

APRIL 14, 2024

The budget may even be loaded into the purchasing and payables software, so that purchases are immediately flagged if they exceed the budgeted amount. Here are the key advantages: Cost reduction. By adhering to a system of planned costs, managers can spot unfavorable variances and remediate them as soon as possible.

Budgeting 40

Budgeting Financial Statements Accounting Accounting 40

Accounting Tools

OCTOBER 11, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals Operations Management What is Total Manufacturing Cost? Total manufacturing cost is the aggregate amount of cost incurred by a business on its production operations within a reporting period. The result is the cost of direct labor. Direct labor.

Cost Accounting 75

Cost Accounting Payroll Budgeting Tax 75

Accounting Tools

OCTOBER 3, 2023

Related Courses Accounting for Inventory How to Audit Inventory What is the Purchases Account? The purchases account is a general ledger account in which is recorded the inventory purchases of a business. Related Articles Cost of Goods Manufactured Cost of Goods Manufactured Schedule Cost of Merchandise Sold

General Ledger 40

General Ledger Accounting Accounting Auditing 40

Accounting Tools

OCTOBER 23, 2023

Related Courses Bookkeeping Guidebook Cost Accounting Fundamentals The difference between cost and expense is that cost identifies an expenditure , while expense refers to the consumption of the item acquired. Unfortunately, cost and expense tend to be used interchangeably even within the accounting terminology.

Cost Accounting 75

Cost Accounting Bookkeeping Billing Financial Accounting 75

The Institute of Financial Operations

APRIL 1, 2022

But they do act as a good basis for discussion. But they do act as a good basis for discussion. In fact, organisations with good scores are more willing to see further improvement opportunities. This provides you with the number of invoices processed per FTE per annum. This could skew your results and thinking.

Accounts Payable 130

Accounts Payable Accounts Payable AP Data Entry 130

Accounting Tools

OCTOBER 1, 2023

It is needed to derive the cost of goods sold , which in turn is needed to calculate profits. To calculate ending inventory, add all purchases during the period to beginning inventory , and then subtract the cost of goods sold.

Accounting 40

Accounting Accounting 40

Accounting Tools

SEPTEMBER 30, 2023

Related Courses Sales and Use Tax Accounting Sales taxes are generally applied to the sale of any goods. This means that a business does not pay sales tax on any purchases it makes that are to be resold to a third party. Inventory costs appear on the balance sheet , while the cost of goods sold appears on the income statement.

Tax 40

Tax Accounting Accounting Billing 40

Accounting Tools

OCTOBER 8, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals The Interpretation of Financial Statements Certain cost accounting formulas should be monitored on a regular basis in order to spot spikes or drops in the performance of an organization. The most important cost accounting formulas are noted below.

Cost Accounting 75

Cost Accounting Accounting Accounting Budgeting 75

Accounting Tools

SEPTEMBER 6, 2023

The first in, first out (FIFO) method of inventory valuation is a cost flow assumption that the first goods purchased are also the first goods sold. In most companies, this assumption closely matches the actual flow of goods, and so is considered the most theoretically correct inventory valuation method.

Financial Reporting 40

Financial Reporting Auditing Accounting Accounting 40

Accounting Tools

SEPTEMBER 7, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory How to Create a Cost of Goods Sold Journal Entry The cost goods sold is the cost assigned to those goods or services that correspond to sales made to customers. Accumulate purchased inventory costs.

General Ledger 40

General Ledger Billing Invoicing Cost Accounting 40

Accounting Tools

JANUARY 9, 2024

What is the Cost of Goods Sold? The cost of goods sold is usually the largest expense that a business incurs. It includes the costs of all direct materials, direct labor, and overhead associated with the goods or services sold to customers. This means that the cost of goods sold is an expense.

Financial Statements 40

Financial Statements Cost Accounting Accounting Accounting 40

Accounting Tools

OCTOBER 24, 2023

In the case of assets, efficiency ratios compare an aggregated set of assets to sales or the cost of goods sold. In the case of assets, efficiency ratios compare an aggregated set of assets to sales or the cost of goods sold. Changes to this ratio are limited by the underlying payment terms agreed to with suppliers.

Accounts Payable 75

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 75

Accounting Tools

OCTOBER 11, 2023

These are items purchased or acquired, but not immediately consumed. This is the amount billed to customers in exchange for the delivery of goods or provision of services. This is the amount billed to customers in exchange for the delivery of goods or provision of services. Key transactions are: Purchase materials and services.

Accounting 75

Accounting Accounting Record Keeping Purchase Order 75