This Accounting category will cover various topics on accounting ranging from financial, management, and advance accounting.
Introduction Sales price variances can occur both in planning and operational forms. The sales price planning variance is often caused due to uncontrollable or external market factors, while Sales Price Operational Variance occur internally. So what is Sales Price Operational Variance? Definition Sales price operational variance can be defined as: “The difference between product units […]
What is Sales Price Operational Variance? Read More »
Introduction Fast paced and dynamic market conditions mean the companies need to stay alert and responsive to the changes. Product sales pricing is one of the most crucial decisions to stay competitive or take the market leader position. Management performs budgeting and planning activities to set a standard sale price per unit for each product.
What is Sales Price Planning Variance? Read More »
Overview In this article, we will cover the market size variance or sales volume planning variance and market share variance or sales volume operational variance. This will include the key definition, formula, examples, analysis and interpretation. In addition, the later section also includes the important of sales volume planning and operational variances. Before diving into
Market Size and Market Share Variances: Definitions, Formula and Examples Read More »
Introduction The first and one of the most important elements in an Income Statement is the Sales or revenue of the company. Manufacturing facilities in particular get affected by the volume of production and corresponding sales. Companies always plan a certain volume of product units to sell in period, achieving that target depends on several
What is Sales Volume Variance? Read More »
Overview In this article, we will cover the differences between accounting profit and economic profit. Before jumping to the differences, let’s understand the overview as well as the key definitions. The aim of profit-making businesses is to generate profit. This profit is generated when the business makes sales to its customers. Once revenues are generated
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Overview In this article, we will cover the current cash debt coverage ratio. Before jumping to detail of the current cash debt coverage ratio, let’s see the overview , key definition, purpose as well as other areas of such ratio. When stakeholders of a business analyze the position or performance of the business, they use
Current Cash Debt Coverage Ratio: All You Need to Know About! Read More »
Overview In this article, we will cover the accrual vs deferral and its keys differences with example. Before, jumping into detail, let’s understand the overview and some key definitions. The accounting system of a business follows the double-entry system of bookkeeping. This system of bookkeeping states that business transactions will be recorded in two different
Accrual vs Deferral: Definitions and Examples Read More »
Overview In this article, we will cover in detail about the account receivable collection period. This include the key definition, purpose, formula, explanation and analysis as well as its limitation. Before we jump into detail, let’s understand the overview as well as some key definition below. As we are aware of, most businesses rely on
Account Receivable Collection Period: Definition, Purposes, Formula and Example Read More »
Introduction In this article, we will cover the prime and conversion costs of a business. This includes the key definitions, examples and key differences between the tow costs. First, let’s understand some overview of the basic costs structures as below. As we are aware of, Typically businesses exist to make profits. These profits are generated
What are Prime and Conversion Costs? Read More »
Overview In this article, we will cover the contingent consideration. This include the different forms of consideration, how contingent consideration happen? In addition, we also cover the accounting for contingent consideration as well as the example. Before, we jump to the detail of the topic, let’s understand some back overview and influences as well as
What is Contingent Consideration? Read More »
