Cost accounting, for example, helps businesses determine the cost of producing goods or services, enabling more accurate pricing decisions. Managerial accounting, on the other hand, focuses on internal analysis to support strategic initiatives like process improvement or resource allocation. ...
Resource allocation is a step in the larger project resource management process that involves estimating resources, procuring resources, allocating resources andtracking resourcesuntil the project is completed. The main objective of the project resource allocation stage is to ensure that resources are spent...
Construction Accounting Written by Kelsie Keleher 12 articles Kelsie is a Senior Strategic Product Consultant for general contractors at Procore; working closely with civil and infrastructure clients. Kelsie holds a Masters of Business Administration (MBA) and has close to a decade of experience in con...
Cost allocation is the assigning of a cost to several cost objects such as products or departments. The cost allocation is needed because the cost is not directly traceable to a specific object. Since the cost is not directly traceable, the resulting allocation is somewhat arbitrary. Because of...
Capital accounts activity includes par value of the common stock, paid-in capital, and treasury share transactions. What are the Steps in Account Reconciliation? The cash account is reconciled to bank statements rather than a subsidiary journal (sub-ledger) for that account. Accounting software an...
Devaluation accounting helps companies develop robust strategic plans and make accuratefinancial forecasts. By factoring in potential devaluation scenarios, businesses can anticipate the impact on cash flows, pricing strategies, profitability, and capital allocation decisions. ...
A temporary account, also known as a nominal account or an income statement account, refers to a type of account in accounting that is used to track revenues, expenses, gains, and losses for a specific accounting period. Unlike permanent accounts, which are continuously maintained and carry over...
How is accounting profit different from economic profit? Accounting profit considers only explicit costs, while economic profit includes both explicit and implicit costs, like opportunity costs. Economic profit provides a broader view of profitability by factoring in alternative uses of resources. ...
A significant part of cost accounting involves the unit cost of a manufacturer’s products in order to report the cost of inventory on its balance sheet and the cost of goods sold on its income statement. This is achieved with techniques such as the allocation of manufacturing overhead costs ...
Now that we have explored how fixed assets are recognized and measured, let us delve into the concept of depreciation and its importance in relation to fixed assets. Depreciation of Fixed Assets Depreciation is a crucial aspect of fixed asset accounting as it reflects the systematic allocation of...