Accounting Tools

DECEMBER 22, 2023

At the end of each accounting period, the total amount in each cost pool is assigned to the various open jobs based on some allocation methodology that is consistently applied. Some customers only allow certain costs to be charged to their jobs. This cost is temporarily stored as an inventory asset.

Billing

Accounting Tools

OCTOBER 11, 2023

This is the amount billed to customers in exchange for the delivery of goods or provision of services. It presents the financial position of an entity as of a point in time, and is closely reviewed to determine the ability of an organization to pay its bills. Examples are common stock and preferred stock.

Accounting

Accounting Tools

OCTOBER 19, 2024

Since it varies with production volume, an argument exists that variable overhead should be treated as a direct cost and included in the bill of materials for products. Presentation of Variable Overhead Variable overhead is typically aggregated into the cost of goods sold, and so is not shown separately in the income statement.

Budgeting

Accounting Tools

APRIL 6, 2024

The most common responsibilities of the accounting department are as follows: Billings Function A billings group assembles information from the shipping and customer order departments to create invoices that are sent to the company's customers. It is essential to issue billings on time, in order to enhance cash flows.

Accounting

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. In total, the cost of the salesperson is semi-fixed.

Cost Accounting

Accounting Tools

OCTOBER 19, 2024

Production supplies, such as machinery oil, are consumed based on the amount of machinery usage; they vary with production volume, and so can be considered variable costs. If a company bills out the time of its employees, and those employees are only paid if they work billable hours, then this is a variable cost.

Cost Accounting

Accounting Tools

MAY 15, 2023

Related Courses Activity-Based Costing Cost Accounting Fundamentals Cost Management Guidebook What is Cost Structure? Cost structure refers to the types and relative proportions of fixed costs and variable costs that a business incurs.

Customer Service

Accounting Tools

DECEMBER 19, 2023

These tasks are handled by the billing clerk , payables clerk , cashier , and payroll clerk , respectively. There are also a number of business transactions that are non-repetitive in nature, and so require the use of journal entries to record them in the accounting records.

General Ledger

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

Accounting Tools

JUNE 20, 2023

Management Accounting Those in the management accounting field are concerned with the process of accumulating accounting information for internal operational reporting. It includes such areas as cost accounting and target costing.

Accounting

Accounting Tools

AUGUST 7, 2024

For example, if the amount in the manufacturing overhead cost pool is $10,000 and there are a total of 1,000 hours of machine time used by all products, then the burden rate is $10.00 For example, you may find that the fully burdened cost of a consultant is $120 per hour. This may call for an increase in her hourly billing rate.

Payroll

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

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.

Cost Accounting

Accounting Tools

NOVEMBER 1, 2023

Areas of Accounting Specialization There are many sub-fields within accounting in which a person can specialize. For example, there are tax accountants , cost accountants , payroll clerks , billing clerks , general ledger accountants , and collection clerks.

General Ledger

Accounting Tools

APRIL 22, 2023

Related Courses Contract Management Cost Accounting Project Accounting What are Allowable Costs? Allowable costs are those expenses specified in a contract that can be billed to the customer. The seller cannot bill any other costs through to the customer.

Billing

Accounting Tools

APRIL 5, 2023

Related Courses Cost Accounting Fundamentals Operations Management What is Backflush Costing? Backflush costing is a streamlined approach to recording the cost of production only after goods have been produced. Disadvantages of Backflush Costing There are several issues with backflush costing.

Cost Accounting

Accounting Tools

JUNE 7, 2023

This reimbursement is based, at least in part, on the costs incurred by the company in order to fulfill the terms of the contract. The company must then track the costs associated with that contract so that it can justify its billings to the customer. The most typical types of cost reimbursement are noted below.

Billing

Accounting Tools

MAY 13, 2024

Related AccountingTools Courses Activity-Based Costing Cost Accounting Fundamentals Examples of Service Departments Examples of service departments are as follows: Maintenance department. Bills the production department for labor and equipment consumed during the maintenance of machinery. Janitorial. Purchasing.

Purchase Order

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

Accounting Tools

AUGUST 25, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is a Job Order Cost Sheet? A job order cost sheet accumulates the costs charged to a specific job. It is used within a job costing system.

Cost Accounting

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.

Accruals

Accounting Tools

OCTOBER 22, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is a Job Cost Sheet? A job cost sheet is a compilation of the actual costs of a job. The report is compiled by the accounting department and distributed to the management team, to see if a job was correctly bid.

Cost Accounting

Accounting Tools

OCTOBER 25, 2023

Related Courses Cost Accounting Fundamentals What is Cost Incurred? A cost incurred is a cost for which a business has become liable, even if it has not yet received an invoice from a supplier as documentation of the cost. This is an accrual accounting concept.

Accruals

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

Accounting Tools

NOVEMBER 20, 2023

Related AccountingTools Courses Cost Accounting Fundamentals Financial Analysis The Most Common Variances Here are the most commonly-derived variances used in variance analysis (they are linked to more complete descriptions, as well as examples): Purchase price variance. Variance source information.

Budgeting

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.

Financial Analysis

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

Accounting Tools

MARCH 11, 2024

The specific components of an accounting system include accounts payable , billings and accounts receivable , fixed assets , inventory , and payroll. Thus, the organizational structure of the accounting department is based in part on the structure of its accounting system.

Accounting

Accounting Tools

NOVEMBER 2, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is a Job Order Costing System? A job order costing system accumulates the costs associated with a specific batch of products. To mitigate the risk of errors, job order records must be scrutinized with great care.

Payroll

Accounting Tools

APRIL 12, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals Cost Management Guidebook What are Prime Costs? Prime costs are the costs directly incurred to create a product or service. Service labor is the cost of billed labor, such as the cost of consulting labor billed to a client.

Billing

Accounting Fun

OCTOBER 7, 2022

Book-keeping – Those books not given to the accountant. Fixed Cost – Size of required bribe. Cost Accounting – Size of accountants' bill. With many thanks to Rod Wilson of RWA Ltd Accountants (Rod tells me that RWA = Really Wicked Accountants)

Accounting

Accounting Tools

AUGUST 30, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals What is Direct Labor? Direct labor is production or services labor that is assigned to a specific product, cost center , or work order. Related Articles Direct Labor Cost Indirect Labor The Difference Between Direct and Indirect Labor

Cost Accounting

Accounting Tools

AUGUST 23, 2023

Related Courses Accounting for Inventory Activity-Based Costing Cost Accounting Fundamentals What is the Manufacturing Overhead Rate? A manufacturing overhead rate is the standard amount of factory overhead cost assigned to each unit of production.

Accruals

Accounting Tools

MAY 3, 2023

The cycle has several distinct components, involving the design of products, their incorporation into a production schedule, manufacturing activities, and a cost accounting feedback loop. The production cycle is comprised of all activities related to the conversion of raw materials into finished goods.

Billing

Accounting Tools

APRIL 29, 2024

A standard cost is based on engineering designs and production methodologies, which can be attained under normal operating conditions. It is comprised of material, labor, and overhead components, and is typically recorded within a bill of materials. How are Standard Costs Used? They are as follows: Management by exception.

Budgeting

Accounting Tools

MARCH 24, 2023

Related Courses Cost Accounting Fundamentals What is the Direct Material Usage Variance? The variance is used in a standard costing system, usually in conjunction with the purchase price variance. Standards for raw materials are typically set by the engineering department and recorded in a bill of materials for each product.

Billing

Accounting Tools

NOVEMBER 1, 2023

Related Courses Accounting for Inventory Cost Accounting Fundamentals How to Audit Inventory What is Direct Material Cost? Direct material cost is the cost of the raw materials and components used to create a product.

Cost Accounting