Unless insurance companies go bankrupt, fixed annuities promise the return of principal. As a result, they are commonly used by retirees to guarantee themselves a steady income for the rest of their lives. They also tend to be useful for more. Read more
The fixed overhead volume variance is the difference between the amount of fixed overhead actually applied to produced goods based on production volume, and the amount that was budgeted to be applied to produced goods. This variance is reviewed as part. Read more
Whether SaaS subscriptions or travel expenses, you can instantly track every data point and monitor trends. You can also export expense data to popular analytics tools for deep visualizations. However, should you recognize the machine’s total cost every time it produces. Read more
The formula to calculate the fixed asset turnover ratio compares a company’s net revenue to the average balance of fixed assets. It is important to understand the concept of the fixed asset turnover ratio as it was helpful in assessing the. Read more
The Inventory balance is $352.50 (4 books with an average cost of $88.125 each). The company has made the following purchases and sales during the month of January 2016. The use of FIFO method is very common to compute cost of. Read more
In this example, we also say that the physical inventory counted 590 units of their product at the end of the period, or Jan. 31. We use the same table (inventory card) for this example as in the periodic FIFO example.. Read more
First in, first out (FIFO) and last in, first out (LIFO) are two standard methods of valuing a business’s inventory. Your chosen system can profoundly affect your taxes, income, logistics and profitability. Although the ABC Company example above is fairly straightforward,. Read more
Factoring, on the other hand, often has very few restrictions on the uses of loan proceeds. This flexibility is another reason many borrowers might be willing to pay a premium. A bank’s line of credit is used for “general working capital”. Read more
The fixed overhead budget variance is also known as the fixed overhead spending variance. Fixed overhead volume variance is the difference between the amount budgeted for fixed overhead costs based on production volume and the amount that is eventually absorbed. This. Read more
Similar to accounts payable, accrued expenses are future obligations for cash payments to soon be fulfilled; hence, both are categorized as liabilities. For example, if a company rents some equipment, it may record the cost of the rental as an accrued. Read more