In conclusion, cost centers and profit centers serve distinct yet important roles within organizations. Cost centers are responsible for controlling expenses and supporting other operations, while profit centers focus on revenue generation and maximizing profits. Balancing the management and coordination of. Read more
This ingenious, foldable bamboo tray is designed to fit over the arm of your sofa, creating a mini table to set things down without using up any floor space. Sure, you can’t put a lamp or a stack of coffee table. Read more
This was disclosed, as required by GAAP, in the footnotes to the audited financial statements. The consistency principle states that once you decide on an accounting method or principle to use in your business, you need to stick with and follow. Read more
In all but one quarter of the year, the P/E ratio reflects earnings occurring in the current fiscal year and those that the company delivered in the prior fiscal year. The two components of the P/E ratio are a company’s stock. Read more
The company might decide to pursue this project instead of the new factory project because it is expected to generate more value per unit of investment. The profitability index (PI), alternatively referred to as value investment ratio (VIR) or profit investment. Read more
At the beginning of a new period, the money is replenished when it has been spent. Journal entry is not required for a cash payment of transactions from a petty cash fund. Every petty cash voucher/receipt is to be signed by. Read more
Businesses physically count their products at the end of the period and use the information to balance their general ledger. Determining the cost of the ending inventory and the cost of goods sold helps determine the periodic income and financial position.. Read more
Simply put, it is the length of time an investment reaches a breakeven point. It also means that if you wanted to pay back your initial investment by 20 years, it would take about 7.3 years (365 divided by 24). You. Read more
They are usually paid as an offset to expenses, such as phone and rents. Agencies and producers who pay their own expenses often receive override commissions. Add overriding commission to one of your lists below, or create a new one. This. Read more
Its value to the actual overhead will be either overapplied or underapplied at the end of a given period. For a company engaged in manufacturing, determining the value of inventory can be complicated. The company must account for the raw materials. Read more