If one product takes 100 machine hours and another product requires 200 machine hours, then the applied overhead is $10,000 for the first product and $20,000 for the second product. These expenses must be paid to stay in business, but they are not d... Read more
This includes bills and obligations you still need to pay, such as what you owe to your suppliers, lenders, or service providers. Continuing with the example, if you owe $678,000, you will subtract this amount from your $2.158 million, leaving you w... Read more
Options traders also use the technique to figure out what price level the underlying price must be for a trade so that it expires in the money. A breakeven point calculation is often done by also including the costs of any fees, commissions, taxes,... Read more
Or, it could use its earnings to reduce liabilities, which would also result in an increase in its common equity and BVPS. Another way to increase BVPS is to repurchase common stock from shareholders and many companies use earnings to buy back share... Read more
This may also include limiting the number of clients it offers credit to in an effort to increase cash sales. It can also offer pricing discounts for earlier payment (i.e. 2% discount if paid in 10 days). The best way that a company can benefit is b... Read more
The average collection period is the average number of days it takes for a credit sale to be collected. During this period, the company is awarding its customer a very short-term "loan"; the sooner the client can collect the loan, the earlier it wil... Read more
By subtracting the annual cost of goods sold from your annual revenue, you can determine your annual profits. COGS can also help you determine the value of your inventory for calculating business assets. The special identification method uses t... Read more
Establishing an allowance for doubtful accounts is super important for your financial stability. The actual payment behavior of customers, or lack thereof, can differ from management estimates, but management’s predictions should improve over... Read more
You must also have 120 semester units within the subjects listed below. For candidates who don’t meet the minimum education requirements, the IIA has made another way to CIA eligibility. Specifically, the IIA may approve candidates with at lea... Read more
If not, you need to go back and check the register for any transactions that may not have been posted to your account yet. Match the entries in your register with the transactions listed on your statement. Compare check numbers, dates, and dollar am... Read more
