Retained earnings is the cumulative amount of earnings since the corporation was formed minus the cumulative amount of dividends that were declared. Retained earnings is the corporation’s past earnings that have not been distributed as dividends to its stockholders. When evaluating. Read more
A company can choose how to divide a calendar year into these four quarters. Companies will often end a quarter at the end of March, June, September, and December. A company can elect to have its fiscal year-end anytime, thereby impacting. Read more
The contribution margin is the amount by which revenue exceeds the variable costs of producing that revenue. On a per unit basis, the contribution margin for Video Productions is $8 (the selling price of $20 minus the variable cost per unit. Read more
One of the most important steps in the accounting cycle is creating and posting your closing entries. Record the entry to close the revenue accounts using the income summary. Instead the balances in these accounts are moved at month-end to either. Read more
Cost reconciliation records are the evidence and documentation that support your cost reconciliation decisions and actions. They include cost reports, invoices, receipts, timesheets, change orders, progress reports, communication records, negotiation records, agreements, or disputes resolutions. You should document and archive cost. Read more
The three basic cost behavior patterns are known as variable, fixed, and mixed. To predict what will happen to profit in the future, we must understand how costs behave with changes in the number of units sold (sales volume). Once the. Read more
Product Cost holds relevance in business as it is the basis behind the pricing of products and the consequent profitability of the business. For an expense to qualify as a production cost it must be directly connected to generating revenue for. Read more
This simplifies the process because the beginning inventory and current period production can be combined or “averaged” together. Finally, the equivalent units of production calculated via the previous three steps should be aggregated to ascertain the total output in terms of. Read more
A present value of 1 table states the present value discount rates that are used for various combinations of interest rates and time periods. A discount rate selected from this table is then multiplied by a cash sum to be received. Read more
Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others. Our goal is to deliver the most understandable and comprehensive explanations of financial topics using simple writing complemented by helpful graphics and animation. Read more