Bookkeeping

In addition, changes in prices and industry trends can make historical data an unreliable predictor of future overhead costs. Finally, using a predetermined overhead rate can result in inaccurate decision-making if the rate is significantly different from how to calculate predetermined overhead rate the actual overhead cost. Big businesses may actually use different predetermined overhead …

How to Calculate Predetermined Overhead Rate: Formula & Uses Read More »

A construction company that used cost reporting to monitor and control the progress and budget of a large-scale project. This means presenting the cost data and metrics in a clear, concise, and consistent manner, using tables, charts, graphs, and narratives. The cost report should follow the standards and guidelines of the organization and the industry, …

Preparing a Production Cost Report Read More »

Granted, the right plan for you will vary depending on your needs, and there are alternative accounting software options on the market that may also be a good fit. Still, QuickBooks Online offers an unbeatable range of features, packaged in a solid interface with good support. These prices rose in early 2024, when this plan …

QuickBooks Essentials vs Plus 2024 Comparison Read More »

Here, the accounts payable account is debited, and the cash account is credited. In this case the debit entry is to the accounts payable control account in the general ledger, and represents the reduction in the amount outstanding to suppliers. Had the cash disbursement journal recorded other items such cash purchases etc. then the debit …

Cash disbursements journal explanation, format and example Read More »

Current assets are those assets that will turn into cash within the next twelve months. Long-term assets are those assets that would take longer than 12-months to convert them to cash and usually includes things such as land, equipment, building, furniture and fixtures. Revenue is the inflow of cash as a result of primary activities …

Classification of Accounting: Financial and Cost Accounting, Questions Read More »

Sometimes your current bank account balance is not a true representation of cash available to you, especially if you have transactions that have not settled yet. If you’re not careful, your business checking account could be subject to overdraft fees. If you’re reconciling an account for the first time, review the opening balance. More than …

How to Run the Bank Reconciliation Report in QuickBooks Online Read More »

The customer service department includes an essential member known as the customer support specialist. These specialists assist customers in using services or products and focus on resolving short-term technical issues. To excel in their role, they need effective communication skills, patience, and empathy. In managerial accounting, the costs of running these service departments are allocated …

Responsibilities of a Customer Service Department Read More »

ROCE indicates the proportion of the net income that a firm generates by each dollar of common equity invested. Generally, investors have greater confidence in companies with a high and sustainable ROCE than in growth-oriented companies that cannot sustain growing returns on common equity. Corporate capital allocation decisions unrelated to core operations (e.g. preferred dividends, …

Return on Equity ROE Calculation and What It Means Read More »

If you are not a U.S. citizen and do not have a Social Security number, learn how to get and use an Individual Taxpayer Identification Number (ITIN) to file a federal tax return. A Social Security number is only issued for citizens and qualifying resident aliens, such as green card holders. This number keeps track …

Taxpayer identification numbers TIN Internal Revenue Service Read More »

At the core of the accounting cycle lies the recording of financial transactions. This initial step involves capturing all business activities that result in a financial impact. In this step, accountants examine and interpret the financial effects of each transaction on the organization. They determine which accounts are involved and classify the transactions based on …

What Are the 4 Phases of Accounting: A Clear Explanation Read More »