That means the company spent less on materials than expected – a good thing! Moving from the basics, let’s delve into direct material price variance. This […]

Notes payable are liabilities that arise from borrowing money by signing a promissory note, which serves as a legal agreement between the borrower and the hedge […]

Period costs include all overheads related to the organization, sales, and distribution. As a result, profits get subtracted from the time in which they take place. […]

Properly distinguishing these expenses is essential for accurate financial reporting and tax purposes. According to Buildium, maintaining an accurate chart of accounts is crucial for this […]

For example, a midsize manufacturing company needs to constantly track trends, unit costs and other information to succeed. A small service business, on the other hand, […]

For example, a midsize manufacturing company needs to constantly track trends, unit costs and other information to succeed. A small service business, on the other hand, […]

Treasury stock transactions and cancellations are recorded in retained earnings and paid-in-capital. Almost all businesses use the double-entry accounting system because, truthfully, single-entry is outdated at […]

This category is usually called “owner’s equity” for sole proprietorships and “stockholders’ equity” or “shareholders’ equity” for corporations. It shows what belongs to the business owners […]

They could change their prices, which could affect demand for your product, causing you to change your prices too. If they grow quickly and a raw […]