Accounting Tools

SEPTEMBER 24, 2023

The controller's cushion refers to the deliberate overstatement of expenses early in the year, so that the controller has a favorable expense buffer that can be drawn down later in the year. Related Articles Accounting Cushion Cook the Books Cookie Jar Accounting Creative Accounting Earnings Management Secret Reserve

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

NOVEMBER 24, 2023

It is the least expensive type of quality cost, and so is highly recommended. The least expensive is having production workers inspect both incoming and outgoing parts to and from their workstations, which catches problems faster than other types of inspection. This is done through a variety of inspections.

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Accounting Tools

SEPTEMBER 12, 2023

External Failure Costs External failure costs include warranty expenses , legal costs associated with settling customer claims, field service costs, recall costs, cancelled orders, and lost customer goodwill. Related Articles Appraisal Costs Preventive Costs The Cost of Quality

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Accounting Tools

OCTOBER 11, 2023

Examples of adjusting entries include the following: To record depreciation and amortization for the period To record an allowance for doubtful accounts To record a reserve for obsolete inventory To record a reserve for product returns To record the impairment of an asset To record an asset retirement obligation To record a warranty reserve To record (..)

General Ledger 40

General Ledger Bank Reconciliation Reconciling Financial Statements 40

Accounting Tools

JULY 30, 2023

Cost classification involves the separation of a group of expenses into different categories. Fixed and Variable Costs Expenses are separated into variable cost and fixed cost classifications, and then variable costs are subtracted from revenues to arrive at a company's contribution margin.

Cost Accounting 40

Cost Accounting Customer Service Accounting Accounting 40

Accounting Tools

MAY 18, 2024

Thus, if you insist on creating a mahogany interior for a car’s glove box when the customer only wants it to be big enough to store maps, then you have just gone to considerable expense to create something that a customer does not define as being of high quality.

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Accounting Tools

OCTOBER 23, 2023

It can be cost-effective for sellers, who can sell more products to existing customers, rather than incurring the considerable expense of acquiring new customers. Or, a computer manufacturer sells a mainframe computer that is bundled with a warranty plan and initial training package.

Computation 40

Computation Accounting Accounting 40

Accounting Tools

AUGUST 28, 2023

Responsibility for Expenses Clause This clause states that each party is responsible for any legal, accounting, and other expenses related to the acquisition transaction. Related Articles Acquisition Purchase Agreement Tender Offer The Acquisition Process The Closing Memorandum

Financial Statements 40

Financial Statements CPA Auditing Tax 40

Accounting Tools

FEBRUARY 15, 2024

Another possible use is to determine the total profitability of a new product, based on its sales, warranty claims, and repair time required for returned goods. Related Articles Lean Business Model Management by Exception Strategic Cost Management Strategic Planning Thus, it is one of several decision tools that management can use.

Customer Service 40

Customer Service Budgeting Collections Cost Accounting 40

Accounting Tools

SEPTEMBER 22, 2023

The offsetting debit may be to an expense account, if the item being purchased is consumed within the current accounting period. The offsetting debit is to the wage expense account, and reflects earned but unpaid hours at the end of the reporting period. A warranty can also be considered a contingent liability. Accrued wages.

Accounting 40

Accounting Accounting Accounts Payable Accounts Payable 40

Spenmo

NOVEMBER 8, 2022

In this article, we address the top 5 accounts payable challenges and how you can overcome them with expense management solutions. Be it employee spending, payments to vendors and suppliers, or even miscellaneous expenses, there is always a need for more oversight over these areas. Read on to find out more.

Accounts Payable 52

Accounts Payable Accounts Payable Accounting Accounting 52

Spenmo

NOVEMBER 1, 2022

In this article, you will learn how your company's finances can benefit from using business virtual cards in day-to-day transactions. Benefits of Virtual Cards More control over spending Companies with traditional reimbursement systems only know which expenses they incur once the employee submits an expense report.

Petty cash 52

Petty cash Budgeting Expense Reports Financial Reporting 52

Spenmo

NOVEMBER 2, 2022

Streamlined employee spending Traditionally, employees file reimbursement claims for business expenses manually. Managers also have better control over employee spending since most cards, like Spenmo's virtual corporate cards , include a merchant lock feature that helps limit business expenses.

Budgeting 52

Budgeting Collections Tax Accounting 52

Accounting Tools

JULY 15, 2023

A warranty can also be considered a contingent liability, since there is uncertainty about the exact number of units that will be returned by customers for repair or replacement. Related Articles Accounting for Contingencies Liability Accounting

Financial Statements 40

Financial Statements Auditing Accounting Accounting 40

Accounting Tools

SEPTEMBER 11, 2023

These analyses are frequently between the revenues and expenses listed on the income statement and the assets , liabilities , and equity accounts listed on the balance sheet. Calculates the amount of profit after taxes and all expenses have been deducted from net sales. Margin of safety. Net profit ratio. Return on equity.

Financial Statements 40

Financial Statements Financial Analysis Accounts Receivable Accounts Receivable 40

Accounting Tools

JUNE 9, 2023

This approach tends to achieve more radical cost reductions (and design changes), but also requires more time to design, and also runs a greater risk of product failure or at least greater warranty costs. Related Articles Activity Based Management Is the Cost of Goods Sold an Expense?

Cost Accounting 40

Cost Accounting Accounting Accounting 40