The recording of accrued expenses in journals and ledgers is more complicated than the other expenses. Therefore, the business entities mostly accrue an expense only if it is substantial. On the other hand, offsetting the account payable will show a decrease in liabilities of the company that is a debit. Any cash discount for early …
Accrued Expense vs Accounts Payable Difference + Examples Leer más »
Likewise, a company that liquidates assets in anticipation of a slowdown in revenue would exhibit a spike in asset turnover. A retailer whose biggest assets are usually inventory will have a high asset turnover ratio. A software maker, which might not have very many assets at all, will have a high asset turnover ratio, too. …
Knowing your industry is key to determining if you’re hitting the right profit margin. For example, restaurant profit margins tend to be razor thin, ranging from 3 percent to 5 percent for a healthy business. “[In] the consulting world, margins can be 80 percent or more — oftentimes exceeding 100 to 300 percent,” Wentworth noted. …
Joint costs are those costs incurred up to the point where the joint products split off from each other. These costs are sunk costs and are not considered when deciding whether to process a joint product further before selling it or to sell it in its condition at the split-off point. If a company sets …
7 6: Review of Cost Terms Used in Differential Analysis Business LibreTexts Leer más »
