Accounting

It also highlights the nonofficial objectives that an organization must achieve to meet and sustain its financial objectives. The scorecard measures an organization’s performance from four perspectives: (1) financial, the profits and value created for shareholders; (2) customer, the success…

Classification of costs Cost accounting refers to a process of accumulating, recording, classifying and analyzing all costs incurred at various levels of production. The purpose of cost accounting is manifold. It provides a final selling price, suggests the best possible…

January 10,800 February 1 5,600 March 12,200 April 10,400 May 9,800 The inventory of finished products at the end of each month is to be equal to 25% of the sales estimate for the next month. On January 1, there…

Comparison with Historical Cost Accounting The main alternative to fair-value accounting is “historical-cost accounting. ” Here, assets are recorded at historical cost, which generally equals the fair value when the assets were originally purchased. Subsequently, historical costs are adjusted for…

If our businesses were to choose a cash basis accounting method, they would record revenue when payments were received and they would record costs when payments were remitted. Payable and receivable entries would not be used since future payments would…

Expenditure that can be attributed to a specific cost unit, for example material that forms part of a product. Total of direct material, direct labor and direct expenses. O For Suggestions & Feedbacks, contact: ATTACH SHAH Indirect cost or overhead…

Demand, ordering costs, carrying costs, and the purchase-order lead time are certain. Purchasing cost per unit is unaffected by the quantity ordered. No cookouts occur. Costs of quality and shrinkage costs are considered only to the extent that these costs…