Accounting

Variable costing, also known as direct costing, is a costing method that includes only variable manufacturing costs in the cost of a unit of product…

Total costs that vary in direct proportion to changes in productive output or activity are referred to as variable costs. Direct materials, direct labor, and…

The income reported under variable costing and absorption costing is not the same. Only the difference in the value of inventory between the two costing…

Freight out is the cost of transportation associated with delivering goods from a supplier to a customer. It is the cost of transportation from the…

For companies that keep inventory, freight is one of the most significant costs of doing business. Companies that keep inventory consider freight to be one…

The price charged by a carrier for transporting cargo from one location to another is referred to as freight expense. The concept of a freight…

The term “T&E expenses” refers to travel and entertainment costs. An expense account is a collection of funds paid to an employee for travel and…

An expense account is a right to reimburse employees for money spent on work-related expenses. It allows you to track and organize the various expenses…

Valuation of Finished Goods Inventory under Variable Costing and Absorption Costing Absorption costing is a management accounting method for accumulating all production costs in the…

The process of recording a business transaction in accounting records is known as journalizing. This activity is only applicable to the double-entry accounting system. The…

Accounts receivable turnover is defined as the ratio of a period’s average accounts receivable divided by the period’s net credit sales. This ratio provides the…

The average accounts receivable figure is required in certain situations to avoid measurement problems. An enterprise typically includes its ending accounts receivable balance in a…