The following sections explain how management can assess potential causes for a favorable or adverse material price variance and devise a suitable response to the variation. If a budget variance is unfavorable but considered controllable, then perhaps there is something management can do immediately to rectify the problem. If the budget item is not something…

Be sure to keep track of which method you use, as you’ll need to know this when it comes time to file your taxes. Also keep in mind that you need to stick with one accounting method for your business from year to year. Any changes in the accounting method you use must be approved…

They record the cost of goods sold, operating expenses, and other expenses incurred by the business. In financial accounting, bookkeeping is essential to keep track of the financial transactions of a business. One of the most important concepts in bookkeeping is the use of debits and credits. Debits and credits are used to record financial…

Maintaining control of your finances is vital if you own a Shopify store. The best way to do so is to integrate accounting software into the ecommerce platform. Shopify is one of the largest e-commerce platforms in the world today, and is designed to help businesses make their products available online. With this platform, you…

Accrual accounting is beneficial for contractors because it allows them to track their expenses and earnings in real time, giving them a better understanding of their financial situation and cash flow. It’s especially useful for small construction companies that deal with longer-term contracts and transactions. Construction accounting is a specialized type of accounting that focuses…

Let’s assume that at the end of a period, we have 1000 units of raw materials left. Of those 1000 units, 600 were purchased at one price, and 400 were purchased earlier at a different price, as shown below. To calculate ending Inventory cost using the property plant and equipment ppande definition method can take…

There are different sales forecasting methods, and some are simpler than others. With the steps below, you’ll have a basic understanding of how to create a sales forecast template that you can customize to the method of your choice. This time-consuming sales forecasting method involves reviewing each lead within your pipeline and determining how likely…

The human experts at Finaloop are highly knowledgeable in accounting & eCommerce. This, combined with its fast and accurate automation technology builds you perfect, always-ready books. You’ll be fully armed with all the data you need to make good decisions and grow your sales. New businesses and startups looking for easy-to-use software which does not…

At date of death, the remaining difference between the face value of the policy and its carrying amount is recognized as a gain. Although this method recognizes income during the life of the policy, it does not take into account the time value of money. COMPARING THE METHODS The three alternative methods are conceptually more…