What is a Flexible Budget? An Overview
What is a flexible budget? A flexible budget is one that recognizes the relativity of line values to change in output or turnover during the budget …
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A Guide to Interpreting Pro Forma Income Statements: Revenues & Expenses
Whether you’re a business owner or an investor, the process of interpreting pro forma income statements is key in projecting a company’s goals when it …
Continue ReadingLearn How to Calculate Ending Finished Goods Inventory: Formula & Explanation
No one can escape the numbers. The finished goods inventory formula is used to calculate the value of finished goods available for sale in inventory. …
Continue ReadingFree Sample: Profit and Loss Statement
Whether you’re just starting your business or have been in operation a while, you will need to learn how to determine profits and losses. Here, we’ll …
Continue ReadingExamples of Period Costs: What Are They?
Period costs include all costs except direct costs incurred on the product. Such costs usually occur either after the manufacturing stage, or outside …
Continue ReadingWhat is Absorption Costing: Comparison with Costing Methods
Absorption costing, often referred to as a traditional costing method, is most often used to prepare financial statements for external use. Absorption …
Continue ReadingAbsorption Costing Methods: Job Order Costing vs. Process Costing
Aren’t you excited to journey deeper into the realm of accounting? Today’s topic is absorption costing. Who wouldn’t want to explore …
Continue ReadingLong Term Liabilities: Examples & Classification
Long-term liabilities are debt obligations that last longer than one year. The most common examples of long-term liabilities include bonds, bank …
Continue ReadingUnderstanding Period Costs in Accounting
What are period costs? Period costs in accounting in a broad sense include all costs except product costs.
Continue ReadingWhat is the Difference Between Absorption Costing vs Activity Based Costing?
The differences between absorption costing vs activity based costing lies in the approach, methodology, and scope of these two cost accounting …
Continue ReadingDiscounted Cash Flow (DCF) Analysis - A Tool for Investment
Want to know if your planned insurance and real estate investments are positive and worthwhile undertakings when it comes to net returns? Learn how …
Continue ReadingExamples of Variable Costs for the Layman
Variable costs are, in essence, expenses associated with a project that can change. Why do they change? The manufacturing industry is an excellent …
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