Accounting Articles

What is Target Profit and How is it Calculated?

To improve your sensitivity analysis skills, one can practice using different methods and tools such as tables, graphs, formulas, or software. Excel can be used to create data tables or charts that show how your target profit changes with different values. Read more

Stockholders Equity Calculator

Long-term assets are assets that cannot be converted to cash or consumed within a year (e.g. investments; property, plant, and equipment; and intangibles, such as patents). To arrive at the total shareholders’ equity balance for 2021, our first projection period, we add. Read more

Step variable cost definition

To return to the example, this means that the QA person could be more efficient or work somewhat longer hours in order to avoid incurring the large incremental cost of an additional person. In such a situation, it may be more. Read more

Statement of retained earnings definition

The purpose of retaining these earnings can be varied and includes buying new equipment and machines, spending on research and development, or other activities that could potentially generate growth for the company. This reinvestment into the company aims to achieve even. Read more

SALES VOLUME English meaning

The sales volume variance formula helps you predict and calculate the negative or positive impact of selling fewer or greater units than you anticipated. Your sales volume alone won’t indicate much in the way of revenue or net sales. But sales. Read more

Standard Cost Variance Analysis- How It’s Done and Why

Additionally, they can assist in developing action plans to address unfavorable variances. Direct labor quantity variances occur when the actual hours employees work differ from the standard hours. Overhead quantity variances occur when the actual overhead costs incurred differ from the. Read more