May 23, 2021
Charles Lutwidge
Incremental Cost Explanation and Calculation
Definition Every business has costs. Costs are usually defined as the monetary value of goods and services that producers and consumers purchase. There are numerous types of costs that an accounting department calculates and records daily basis or less frequently...
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May 22, 2021
Charles Lutwidge
Operating Cycle Explanation and Formula
What is an operating cycle? The operating cycle in accounting is the period (number of days) from the moment the raw materials arrive at the warehouse until the receipt of payment for the products sold. This is an important part...
May 21, 2021
Charles Lutwidge
Operating Expenses Explanation with Examples
One of the important parts of accounting is the company’s income and expenses. It is the nature, conditions of performance, and the direction of work of a particular organization that affect the division of funds into -income and expenses. Definition...
May 20, 2021
Charles Lutwidge
Meaning of Mixed Cost in Accounting
Definition There are two ways cost can behave. They can either be variable or they can be fixed. However, some activities combine both variable and fixed costs. When this happens, we call it mixed costs. For example, a salesperson’s salary...
May 17, 2021
Charles Lutwidge
Simple Explanation of Purchase Discounts
Almost every individual and business owner has come across purchase discounts sometime in their life. The financial benefit for the company providing the discount is extremely simple – it gets cash flow that it can use in its business activities....
May 16, 2021
Charles Lutwidge
Cash and Cash Equivalents
Information on the availability and flow of funds is necessary to determine the minimum need for funds, as well as to analyze the company’s liquidity. Cash and cash equivalents are the first items we see on the company’s Balance sheet...
May 15, 2021
Charles Lutwidge
Simple Explanation of FOB Shipping Point
Meaning The FOB portion of this term is usually considered to be an abbreviation for “Free On Board”, although you might also see F stand for freight. In any case, the meaning for the user is the same. It indicates...
May 14, 2021
Charles Lutwidge
Days Sales in Inventory
The concept of product turnover determines how quickly the funds invested in goods will return to you, and bring a profit. This is one of the main concepts for the company’s success. In this article, we will explain what it...
