Bookkeeping

Considering manufacturing, as goods move towards the last stages of development and as stock in the inventory gets sold, the cost related to the product must be identified as an expenditure. When working with FIFO, the...

It also helps businesses make better decisions on pricing, manufacturing, marketing, and purchasing. The inventory days metric, otherwise known as days inventory outstanding (DIO), counts the number of days on average it takes for a company...

Using accounting software can also be an immense help in measuring your expenses and profits in operating a business. Contribution margin ratio is a useful metric that can take all of these costs into consideration on...

Earnings per share takes into account common stock only; the preferred stock does not influence the value of the shares. Therefore, to summarize the net impact on the earnings per share (EPS) line item, new stock...

Using accounting software can also be an immense help in measuring your expenses and profits in operating a business. Contribution margin ratio is a useful metric that can take all of these costs into consideration on...

One of the significant benefits of FOB shipping points is cost savings for buyers. Since the buyer assumes ownership and responsibility for the goods once they leave the seller's designated shipping point, they can arrange to...

For example, imagine a company reports $1,000,000 of cash on hand at the end of the month. Without context, a comparative point, knowledge of its previous cash balance, and an understanding of industry operating demands, knowing...

Shareholders’ equity belongs to the shareholders, whether they're private or public owners. Similar to the current ratio and quick ratio, the debt-to-equity ratio measures your company’s relationship to debt. Long-term assets (or non-current assets), on the...

Shareholders’ equity belongs to the shareholders, whether they're private or public owners. Similar to the current ratio and quick ratio, the debt-to-equity ratio measures your company’s relationship to debt. Long-term assets (or non-current assets), on the...

Shifting labor costs can be equated to the changing tides in our ocean analogy. They can have a significant impact on payroll accruals, as they may affect the amount of salary and wages that must be...