Accounting

Detailed information can also help to identify cases where it may be appropriate to shift specific tasks to less expensive personnel. Cost accounting refers to the accounting procedures designed to assess the costs of production a business incurs.

What is the cost method under Aspe?

The cost method provides management with the ability to determine the timing of income from the investment in a subsidiary through the ability to control the declaration of dividends, which can be used to manag […]

If you’re on the fence about whether or not it’s worth switching from a static budget to the more flexible rolling forecast approach, don’t be. When preparing annual budgets, large businesses often need to consider a number of variables that keep on changing from day to day or month to month. For example, the implementation of a government policy that directly affects the business will require the company to adjust its financials to accommodate and reflect the changes. The dat […]

The perpetual system keeps track of inventory balances continuously, with updates made automatically whenever a product is received or sold. It is key to having stock available for sale and ensures you keep COGS to a minimum. A perpetual inventory system is the most common method used by fast-growing ecommerce businesses.
Not only does it help track inventory data in real-time, but it also helps eliminate labor costs and human error. Let’s look at why ecommerce businesses choose to use a […]

By failing to assign costs to all of the activities, touring bicycles were subsidizing mountain bicycles. Activity-based costing has revealed that low-volume, specialized products have been the cause of greater costs than managers had realized. More technical cost drivers are machine hours, the number of engineering change orders, the number of customer contacts, the number of product returns, the machine setups required for production, or the number of inspections. If a business owner can iden […]

Other deductions, such as contributions to a Roth IRA and certain voluntary benefits, do not lower taxable income. These are known as post-tax deductions. If you earn an annual salary, simply take the amount you earn each year and divide this amount by 12 to get your gross monthly income. Then, that $113,000 gross income is used to calculate other forms of income. Gross income is used to calculate net income, adjusted gross income, and modified adjusted gross income. Severe penalties may be imp […]

We will go into more detail below, but the best way to mitigate recording errors is to automate your inventory management with a POS system wherever possible. Avoiding stock control errors will improve your grasp of your inventory and help you avoid false shrinkage. In the world of inventory shrinkage there are acceptable levels and unacceptable levels. But it’s harder for the wholesaler to count the 598 cases of wine they got from the vineyard.
Of that portion, 42.7% is attributed to emp […]