Because you’re allocating based on number of units, the cost attached to all units is the same. You’re not weighting the cost allocation based on sales value. This method is considered less desirabledue to the fact that physical measures... Read more
A business performance report is a valuable business tool that provides an overview of how the business is performing. It combines information and analysis for forecasting revenues, expenses and profit for the upcoming year. There are many ways to m... Read more
The typical profit margin ratio of a company can be different depending on which industry the company is in. The Net Profit Margin (%) measures the percentage of earnings remaining once all operating and non-operating expenses have been deducted fro... Read more
It shows the number of years you will need to get that money back based on present returns. Our calculator uses the time value of money so you can see how well an investment is performing. Discounted Cash Flow is a method to evaluate the value of an... Read more
The net amount is recorded as either a debit or a credit, depending on whether the company paid more or less than the shareholders did originally. Under par value method, purchase of treasury stock is recorded by debiting treasury stock by the total... Read more
The profitability index method is a tool used in capital budgeting that is valuable when various investment opportunities are being considered. The method is sound because the considers the time value of money and it is useful to compare opportuniti... Read more
Since the formula for this variance does not involve absorbed overhead, the basis of absorption of overhead is not a factor to be considered in finding this variance. The variance calculation is normally applied to each individual line item within t... Read more
Typically, the heading consists of three lines containing the company name, name of the trial balance, and date of the reporting period. While we still have not prepared financial statements, we have captured the activity and organized it into a tri... Read more
Learn more about cost behavior, the definitions of fixed, variable, and mixed costs, and the pattern analysis for each type of cost. Looking at contribution margin in a vacuum is only going to give you so much information. The non-operating section... Read more
With a user-friendly interface and a solid mobile application, Zoho Books is one of the more straightforward, accessible solutions listed here. But it still comes with its share of limitations, including a lack of payroll management resources. The f... Read more
