Accounting

Introduction to inventory cost flow methods Previously when we talked about inventory, we assumed that inventory costs did not change. However, inventory purchase prices fluctuate…

Sum-of-the-years-digits method applies a decreasing rate to the asset depreciate value and produces a decreasing depreciation expense over the useful life of the asset. The…

Abstract Cost and Management Accounting practice helps an organization to survive in the competitive, ever-changing world, because it provides an important competitive advantage for an…

Inventory control means keeping the overall costs associated with having inventory as low as possible without creating problems. This is also sometimes called stock control.…

Cash and accrual bases of accounting We have discussed transactions that include direct and immediate cash flows. Cash was received in the period of earning…

Long term assets such as patents and trademarks and long term financial assets such as shares held in other companies. In this tutorial I focus…

The method of last-in, first-out assumes that the cost of the goods purchased last is charged to the cost of goods sold first. Last-in, first-out…

The Weighted average cost flow method (also called the average cost method) provides that the average unit cost is included in the cost of goods…

INTRODUCTION An inventory is a stock or store of goods. Keeping an optimal amount of raw materials in stock is a crucial component of any…

Definition of Accounting Policies: The specific policies and procedures used by a company to prepare its financial statements. These include any methods, measurement systems and…

Types of Accounting Accounting is a process of accumulating, summarizing and communicating financial information.  Financial information can be of different types and serve different purposes,…

The Interest Incentive Effect: The interest incentive effect Refers to a change in interest rates ,thereby including a change in the incentive to business firms…