Accounting Articles

What Is The Main Focus Of Managerial Accounting?

Standard Costs — To assist in monitoring productive efficiency and cost control, managerial accountants may develop standards. These standards represent benchmarks against which actual productive activity is compared. Importantly, standards can be de... Read more

What Is The Accumulated Depreciation Formula?

However, there are situations when the accumulated depreciation account is debited or eliminated. For example, let’s say an asset has been used for 5 years and has an accumulated depreciation of $100,000 in total. A lot of people confusedepreci... Read more

What Is Overhead Cost And How To Calculate It

If that is the case, simply substitute your per-unit numbers in the billable hours equation. All of this tracking should be relatively easy to do with proper accounting software. But exactly how you categorize overhead costs will differ from business... Read more

What Is Net Operating Loss Nol?

If a return with NOL carryovers has not yet been filed, go to theLOSSscreen and uncheck the boxProcess NOL carryforward using "taxable income without NOL carryforward" figure. Under a long-standing provision, IRC §172, a corporation can elect to waiv... Read more

Why Allocate Overhead Costs?

This assumption of a causal relationship is increasingly less realistic as production processes become more complex. The predetermined overhead rate is set at the beginning of the year and is calculated as the estimated overhead costs for the year di... Read more

What Is Payback Period?

Since the payback period focuses on short term profitability, a valuable project may be overlooked if the payback period is the only consideration. This formula can only be used to calculate the soonest payback period; that is, the first period after... Read more