However, a favorable direct material price variance is not always good; it should be analyzed in the context of direct material quantity variance and other relevant factors. It is quite possible that the purchasing department…
The $1,000 net profit balance generated through the accounting period then shifts. This is from the income summary to the retained earnings account. The closing journal entries example comprises of opening and closing balances. Opening…
Once you have identified the applicable GST amount, multiply it by the current GST rate. The standard GST rate in Australia is 10%, but in some cases, this rate could be higher, luxury items may…
Usually, that will involve a discovery meeting to determine what a potential client is looking for, how often, and cpa billing rates exactly what your scope will be. You discover what areas they need your…
On the other hand, a current ratio greater than one can also be a sign that the company has too much unsold inventory or cash on hand. The current ratio is a very common financial…
We leave this step until last because some funders, including many government funders, will not allow fundraising expenses to be charged to their grants or contracts. Regardless of whether a funder will pay for fundraising…
We’ll also explore how modern software solutions can optimize this process for businesses. The average payment period and the accounts receivable turnover ratio measure different things, but they relate to how a company manages its…
This means that a company using the accrual method accounts for money that it expects to receive in the future. For instance, a company that delivers a product or service to its customer records the…
The most common causes of labor variances are changes in employee skills, supervision, production methods capabilities and tools. Labor costs are one of the highest expenses that most businesses contend with. Once you’ve identified your…
Over time, compound interest can create additional income, provided you have enough principal generating interest. The more you can deposit, the more you’ll earn long-term as your deposits and interest accumulate. Putting your money in…