Posted inBasics
What are nonmanufacturing overhead costs?
Nonmanufacturing overhead costs are the business expenses that are outside of a company's manufacturing operations.…
Posted inBasics
What is the difference between product costs and period costs?
A manufacturer's product costs are the direct materials, direct labor, and manufacturing overhead used in making its products. (Manufacturing overhead…
Posted inBasics
What is the meaning of equity?
Equity is used in accounting in several ways. Often the word equity is used when referring to…
Posted inBasics
What is the cost of sales?
Cost of sales is the caption commonly used on a manufacturer's or retailer's income statement instead…
Posted inBasics
What is the difference between financial accounting and management accounting?
Financial accounting has its focus on the financial statements which are distributed to stockholders, lenders, financial analysts, and…
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What are accrued expenses and when are they recorded?
Accrued expenses are expenses that have occurred but are not yet recorded through the normal processing of…
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What is petty cash?
Petty cash meaning Petty cash is a small amount of cash on hand that is used…
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What is owner’s equity?
Owner's equity is one of the three main components of a sole proprietorship's balance sheet and accounting equation.…
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How do I calculate the amount of sales tax that is included in total receipts?
To calculate the sales tax that is included in a company's receipts from items subject to sales…
Posted inBasics
What is the cost of goods sold?
The cost of goods sold is the cost of the merchandise that a retailer, distributor,…