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Now that we know what both phrases mean and how to pronounce them, let’s take a look at how to use them in sentences. Depending on the context of what you’re trying to say, either phrase could be correct. Work in progress functions as a noun in sentences; think of it as a synonym of […]
It uses only the lowest and highest production activities to estimate the variable and fixed cost, by assuming the production quantity and cost increase in linear. It ignores the other points of productions, so it may be an error when the cost does not increase in a linear graph. Fixed costs can be found be […]
Unfavorable variance occurs when the actual unit price of an item purchased is higher than its standard purchase price. Recognizing these positive variance drivers helps the procurement team replicate successful strategies across categories and build more effective supplier relationships over time. Regular purchase price variance tracking also boosts accountability within the procurement team. When team […]
This metric provides insights into inventory management efficiency and the liquidity of inventory assets. The average number of days on hand indicates the typical duration that inventory is held before it is sold. This metric provides insight into inventory turnover rates and helps businesses maintain optimal stock levels. Days in inventory measures the average time […]
Zoho does have a free plan for businesses with an annual revenue of less than $50,000, which can be a great solution if you have a startup, sole proprietorship or home-based business that needs a basic accounting system. You’ll enjoy access to many useful features so that you can automate your accounting and bookkeeping without […]
Shareholder equity can also be expressed as a company’s share capital and retained earnings less the value of treasury shares. Though both methods yield the exact figure, the use of total assets and total liabilities is more illustrative of a company’s financial health. As such, it helps the shareholders and investors make more informed decisions […]
It keeps the balance sheet correct and follows the double-entry accounting system. In our example, total assets are $8,000,000, which equals liabilities of $4,800,000 and equity of $3,200,000. It breaks down into current assets of $4,600,000 and long-term assets of $3,400,000. By assessing these financial ratios, investors and stakeholders can make informed decisions about the […]
At Rooled, we understand the importance of making informed decisions about grant opportunities. We’re here to help you navigate the intricacies of unconditional grants and explore the diverse world of grant accounting to empower your nonprofit’s mission. Stay tuned as we continue our exploration of grant types and their impact on nonprofit financial management. For […]
Moreover, it can be used for both startup and long-established nonprofit organizations. To secure the finances of your nonprofit institution’s undertakings, we highly recommend you check out our nonprofit budget examples! They come in different varieties to give you more choices for a reference! Not only that, we also have some important insights about the […]
On April 1, you will post a debit entry to the rent receivable account for $800 and post a corresponding credit entry to the rental revenue account for the same amount. However, once you receive the rental payment, you decrease the rent receivable account with an $800 credit entry and post a debit entry for […]
