businesses were to choose a cash basis accounting method‚ they would record revenue when payments were received and they would record costs when payments were remitted. Payable and receivable entries would not be used since future payments would not be recorded and an inventory entry would not be needed as well. The merchandise purchased for resale or the materials purchased for use in the manufacturing of products would be recorded as an expense in the accounting period in which those purchases were
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Hstorical Cost Accounting Advantages and disadvantages of historical cost accounting‚ alternatives to historical cost accounting 2.1 Introduction Accounting concepts and conventions as used in accountancy are the rules and guidelines by which the accountant lives. The historical cost accounting convention is an accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition. The historical cost accounting is the situation
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Contract costing is a system of job costing that is applied to relatively large cost units‚ which normally take a considerable length of time to complete. Building and construc¬tion work‚ civil engineering and shipbuilding are some examples of industries where large contract work is undertaken‚ and where contract costing is appropriate. Contract Costing deals with the books of the Contractor only‚ i.e. the cost of the work and measuring the profit or loss on the contract. Contract costing is
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determine and calculate product cost. The income statements formats of both methods include period and product costs. However‚ each one has a different cost classification definition. Both have the same direct material and direct labor allocation‚ the differences is how they report the income‚ product‚ and pricing One of the main differences between the two methods is the accounting for the fixed manufacturing costs. In variable costing‚ fixed manufacturing costs are looked at as expenses of
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Petrina Barkley IP 2 Managerial Accounting Karina KasztelnikAmerican Intercontinental University On-line Consider the following scenario: Andre has asked you to evaluate his business‚ Andre’s Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year‚ regardless of the number of haircuts. Rent and other fixed expenses are $1‚750 per month. Hair shampoo used on all clients is $0.40 per client
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Unit 6 Statement of Cash Flows and Financial Statement Analysis & The Metrics of a Company Unit Assignment Kaplan University January 18‚ 2013 AC505: Advanced Managerial/Cost Accounting |Transaction |Operating |Investing |Financing | |A. Paid bills to insurers and utility providers
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Introduction Wrong or inaccurate measurements can lead to wrong decisions‚ which can have serious consequences‚ costing money and even lives. The human and financial consequences of wrong decisions based on poor measurement being taken in matters as important as environmental change and pollution are almost incalculable. It is important therefore to have reliable and accurate measurements which are agreed and accepted by the relevant authorities worldwide. Metrologists are therefore continuously
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Accounting homework (Chapter 4) Discussion Questions 4.2 Why do you think it’s important to keep separate the transactions made by the business and its owner? Give an example of a personal transaction that has implications for the business entity. According to entity concept‚ every type of entity – sole trader‚ partnership‚ company and trust – must keep records of its business transactions separately from any personal transactions. Personal transactions are transactions of the owners‚ partners
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working capital C) master budgeting D) project-cost budgeting Answer: A Diff: 1 Terms: capital budgeting Objective: 1 AACSB: Reflective thinking 2) The two factors capital budgeting emphasizes are: A) qualitative and nonfinancial B) quantitative and nonfinancial C) quantitative and financial D) qualitative and financial Answer: C Diff: 1 Terms: capital budgeting Objective: 2 AACSB: Reflective thinking 3) The stage of the capital budgeting process in which
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Individual Assignment 1. What should be submitted a) A Word document (BIS320_W3_???) containing the scenarios. b) An Excel document (BIS320_W3_???) containing costs and options for a wireless router. c) A Word document (BIS320_W3_PC_???) containing the plagiarism check report. Simply copy (not screen print) the entire plagiarism report to a word document and submit it. Completed plagiarism report must be turned in to receive credit for the assignment. If not available before the deadline‚ submit
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