Bookkeeping

You must show that you understand the rights, duties, and liabilities of debtors, creditors, and guarantors, as well as the audit and appeals process employed by the Internal Revenue Service (IRS). The American Institute of Certified Public Accountants (AICPA) develops and scores the test, grading each part on a scale of zero to 99. If that’s the case, you’re ready to …

Adding these two variables together, we get an overall variance of $3,000 (unfavorable). Although price variance is favorable, management may want to consider why the company needs more materials than the standard of 18,000 pieces. It may be due to the company acquiring defective materials or having problems/malfunctions with machinery. Favorable variances are defined as either generating more revenue than …

Expenses might have dipped down because management was able to work out a special deal with a supplier. Revenues might have went up because a few large unexpected sales came in. All of these things help produce a favorable variance in the budgeted forecast and the actual business performance. It will also be a factor why the company’s actual profits …

Companies classify these costs based on accounting conventions and standards. In that branch, companies may divide costs based on other factors. A period cost is any cost consumed during a reporting period that has not been capitalized into inventory, fixed assets, or prepaid expenses. These costs tend to be clustered into the selling, general and administrative classifications of expenses, and …