Kategorie: Bookkeeping

The book value of a machine is a sunk cost that does not affect a decision involving its replacement. In other words, these are the costs which shall be incurred in the all managerial alternatives being considered. Since they are the same in all alternatives, they become irrelevant and need not be considered in calculations…

But when the assets are exchanged without cash settlement, we have to determine the gain and loss of the transaction base on the fair value of both assets. Visit Accounting for Management’s website for some additional information about non-cash investing and financing activities to keep in mind as we work through the cash flow statement…

The IRS prescribes rules for when a contract is considered to be complete and also restricts this method for tax purposes to contractors who don’t exceed a specified annual revenue. Costs paid for a betterment to a unit of property must be capitalized. Failure to actually perform the maintenance more than once is not fatal,…

The company offers one-time training to learn about the numerous features of the application. They offer several firmware programs for project management, modeling, accounting/financial and operations management. ProContractor is one of their best-selling remodeling estimating firmware. The ProContractor is designed for project management, accounting and estimating. That leaves contractors and construction accountants with a choice…

The business can interpret how the sales figures are affecting the overall profits. In the next part, we must calculate the variable cost per unit, which we’ll determine by dividing the total number of products sold by the total variable costs incurred. Overall, per unit contribution margin provides valuable information when used with other parameters…

The business can interpret how the sales figures are affecting the overall profits. In the next part, we must calculate the variable cost per unit, which we’ll determine by dividing the total number of products sold by the total variable costs incurred. Overall, per unit contribution margin provides valuable information when used with other parameters…

The business can interpret how the sales figures are affecting the overall profits. In the next part, we must calculate the variable cost per unit, which we’ll determine by dividing the total number of products sold by the total variable costs incurred. Overall, per unit contribution margin provides valuable information when used with other parameters…

The business can interpret how the sales figures are affecting the overall profits. In the next part, we must calculate the variable cost per unit, which we’ll determine by dividing the total number of products sold by the total variable costs incurred. Overall, per unit contribution margin provides valuable information when used with other parameters…

By accurately identifying variable costs, businesses can calculate their contribution margin ratio and determine the overall profitability of their products or services. The contribution margin ratio is calculated by dividing the contribution margin by the selling price of the product. This ratio represents the portion of each sale that contributes to covering the fixed costs…

By accurately identifying variable costs, businesses can calculate their contribution margin ratio and determine the overall profitability of their products or services. The contribution margin ratio is calculated by dividing the contribution margin by the selling price of the product. This ratio represents the portion of each sale that contributes to covering the fixed costs…