businessman claims not to. It should be said also that the entrepreneur mentioned may well have an accounting system that fits the modest needs of his/her business well. He/she understands cost-benefit: accounting, like everything else, should be worth its cost. But he/she should ask himself/herself if he/she could be a better manager if he/she had more information, and perhaps accounting could help him/her there. DQ4. 14 The main reason for not
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items and requires explanation of justification for any budgeted amount above the minimum. Q21-5. A cost objective’s budget is predicted based on the anticipated consumption of cost drivers. Q21-6. The continuous improvement budgeting concept establishes a budget that has improvements built-in throughout the budgeting period. For a given cost category, the expenditures to provide that cost may be reduced each month of the budget period. Q21-7. The cash budget tends to bring together all
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Salaries & Wages Cost | Occurrence | Transactions recognized in the financial statements have occurred and relate to the entity. | Salaries & wages expense has been incurred during the period in respect of the personnel employed by the entity. Salaries and wages expense does not include the payroll cost of any unauthorized personnel. | Completeness | All transactions that were supposed to be recorded have been recognized in the financial statements. | Salaries and wages cost in respect of all
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the company to manage inventory and supplies more profitably. These recommendations will assist in changing the current financial situation they are experiencing of a negative return on sales of -1.39% (net loss/total sales = $17,174/$1,238,674). Inventory Management Inventory control is vital to an institution and its financial well being. To be effective, management must have the following systems in place to ensure efficiency. A system to keep track of the inventory on hand and on order
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Depositor: A person or company that places money in a bank account. write-off: To charge an asset amount to expense or loss, in order to reduce the value of that asset and one's earnings. Allowance: A sum set aside for an occurrence that may or may not come to pass. For example, funds earmarked for expenses associated with potential bad weather. Corporation: The most common form of business organization, and one which is chartered by a state and given many legal rights as an entity separate
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In a business accounting context, the word inventory is commonly used in American English to describe the goods and materials that a business holds for the ultimate purpose of resale. In the rest of the English speaking world stock is more commonly used, although the word inventory is recognised as a synonym. In British English, the word inventory is more commonly thought of as a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let
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should impair their inventory of hogs, effective September 30, 2002. With three categories of hog inventory (live hogs for sale, developing animals, and processed pork products), PIGS is only considering to impair their inventories of live hogs and developing animals to be sold to third parties at market prices. Concerning processed pork prices, they are believed to be sufficient to cover production costs. II. Issues Management refuses to write off their inventory as they believe future
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to hold inventories? 1) _____ A) to minimize holding costs B) to take advantage of quantity discounts C) to decouple various parts of the production process D) to hedge against inflation E) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand 2) Which of the following is NOT one of the four main types of inventory? A) work-in-process inventory B) finished-goods inventory C) raw material inventory D) safety stock inventory E) maintenance/repair/operating
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unit price of inventory is increasing during a period, a company using the LIFO inventory method will show less gross profit for the period, than if it had used the FIFO inventory method. 2.Under a perpetual inventory system, the cost of goods sold is determined each time a sale occurs. 3.A periodic inventory system does not require a detailed record of inventory items. 4.Control over cash disbursements is improved if major expenditures are paid by check. 5.A manufacturer’s inventory consists of
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Cost of Goods Name XACC/290 Date Instructor Cost of goods sold or COGS is the accumulated total of all the cost used to produce products or services, which have been sold or completed (Accounting Tools). On an income statement the cost of goods sold is subtracted from the revenues to obtain a company’s gross margin. The formula used to calculate the cost of goods sold in simple form is: Beginning inventory plus purchases less ending inventory equals cost of goods sold. Five methods can be
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