Category: Bookkeeping

This setup explains the unfavorable total direct materials variance of $7,200 — the company gains $13,500 by paying less for direct materials, but loses $20,700 by using more direct materials. A Material Price Variance (MPV) occurs when the actual price paid for materials used in production is different than the standard price for the materials.…

By taking both quantities at actual we are eliminating the effect of difference between the standard quantity and actual quantity, thereby leaving only the difference between prices. The method described later is not usually recommended because one of the advantages of a standard costing system is the valuation of all stock at standard costs. The…

Alternatively, the negotiated agreement may not be essential because we have a strong option and can walk away with confidence. To perform well, and perform well consistently, we must first learn to prepare. Ask any athlete who spends countless tedious hours preparing for a competition, or a lawyer about to step into a courtroom. At…

This set of templates focuses on providing comprehensive training on negotiation. Use this template to gain clarity on the negotiation concept, improve negotiation skills, and close the deal efficiently. In this world of business, having negotiation skills is paramount. However, to ensure successful negotiation, proper planning is the key. Did you know that more than…

After receiving a new measurement update, she quickly recalculates to confirm the new furniture still fits, thus preventing costly errors. Knowing that 1 inch equals 2.54 centimeters, to convert from cm to in one needs to divide the measurement in centimeters by 2.54 in order to get the inch equivalent. To do so, begin by…

Here’s a handy conversion chart to help you convert cms to inches. When using a map, distances might be indicated in centimeters, but you may prefer to visualize them in inches. With a cm to inches calculator, you can transform those distances into a familiar scale, aiding in better navigation and planning your routes effectively.…

By examining the accounting equation, we can see that expenses are used to reduce owner’s equity. Generally, expenses are debited to a specific expense account and the normal balance of an expense account is a debit balance. Expenses are the costs a business has to pay for to operate and make money. Every business has…

The types of deductions that businesses can write off may be different depending on the country. For example, the US Internal Revenue Service (IRS) has very strict rules on what can or cannot be claimed as a deduction. Insurance payments are called premiums and are usually paid once a month. These are basic utilities that…

Balance sheet, or statement of financial position, is one of the four financial statements which shows the company’s financial condition at a given point in time. In general, a balance sheet is prepared by following the applicable accounting standards such as US GAAP, IFRS, or Local GAAP. Also, it is usually prepared the end of…

Examples of current liabilities include accounts payable, wages payable, accrued expenses, and short-term debt. By analyzing the balance sheet, investors can determine a company’s financial health and make informed decisions about whether to invest in the company. A balance sheet aims to give interested parties an overview of the firm’s financial status and show what…