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248 results for "defined contribution pension plan"

What is a defined contribution pension plan? Author: Harold Averkamp, CPA, MBA A defined contribution pension plan is one in which the employer contributes an amount into each eligible employee’s account within an...

A retirement plan that does not specify the amount that a retiree will receive. Rather, the employer’s obligation is to contribute a specific amount into a fund to be used for payments to retirees.

surcharges be reported as revenues or as other income? What is EBITDA? What is net sales? What does it mean to recognize an expense? What is a defined contribution pension plan? What is a defined benefit pension plan?...

A retirement plan that specifies the amount that a retiree will receive, such as 1% of the person’s recent salary times the years of service. The employer’s obligation is to contribute enough money to meet...

What is a defined benefit pension plan? Author: Harold Averkamp, CPA, MBA A defined benefit pension plan is a retirement plan in which the employer commits to paying a specified monthly payment to each eligible employee...

Our Explanation of Break-even Point illustrates how to determine the number of units or sales dollars that will result in zero net income. The techniques rely on a product's contribution margin or contribution margin...

A liability account that reports the amount a company owes as of the date of the balance sheet for the company’s pension plan. Information on pensions can be found in an Intermediate Accounting textbook.

What is contribution margin? Author: Harold Averkamp, CPA, MBA Definition of Contribution Margin In accounting, contribution margin is defined as: revenues minus variable expenses. The contribution margin can be...

Under the accrual method of accounting, this account reports the employer’s expense for the company’s pension plan during the period indicated in the heading on the income statement. Information on pensions...

Our Explanation of Income Statement helps you learn the most important features of a corporation's income statement (also known as the statement of operations or profit and loss statement). We provide more understanding...

's cost of goods sold will increase in total as sales increase. Cost of goods sold will decrease in total when sales decrease. 7. Contribution margin is defined as sales (or revenues) minus variable expenses. True...

Our Explanation of Payroll Accounting discusses the taxes and benefits which are withheld from employees' pay as well as the taxes and benefits that are expenses for the employers. Also provided are examples of the...

This ratio indicates the percentage of each sales dollar that is available to cover a company’s fixed expenses and profit. The ratio is calculated by dividing the contribution margin (sales minus all variable...

The result of subtracting all variable expenses from revenues. It indicates the amount available from sales to cover the fixed expenses and profit.

Way, etc. employer’s portion/expense for Social Security taxes, Medicare taxes, state and federal unemployment taxes employer’s portion/expense of fringe benefits such as health and dental insurance, paid...

How is working capital defined and measured? Author: Harold Averkamp, CPA, MBA Definition of Working Capital Working capital is defined as the amount of a company’s current assets minus the amount of its current...

An income statement that subtracts all variable costs and expenses from revenues in order to show the contribution margin. From that is subtracted the fixed costs and expenses to arrive at net income. To learn more, see...

What is the contribution margin ratio? Author: Harold Averkamp, CPA, MBA Definition of Contribution Margin Ratio The contribution margin ratio is the percentage of sales revenues, service revenues, or selling price...

Our Explanation of Financial Statements provides you with the highlights of each of the five external financial statements issued by U.S. corporations. Our insights will give you a good understanding of what the...

In the context of inventory this means that the inventory should be reported at the lower of its cost or its net realizable value (NRV). The rule is associated with the conservatism guideline or principle. Net realizable...

are: An increase in the company’s fixed expenses. These include rent, depreciation, salaries of managers and executives, etc. A reduction in the contribution margin. Contribution margin is sales minus the variable...

The revenue classification used by nonprofit organizations to account for the amounts received as donations. It is also an expense classification for the donations made to another nonprofit organization. Contributions...

What is the break-even formula? Author: Harold Averkamp, CPA, MBA Break-even Point in Units of Product The formula for determining the break-even point in units of product sold is: total fixed expenses divided by the...

What is common stock outstanding? Author: Harold Averkamp, CPA, MBA Definition of Common Stock Outstanding Common stock outstanding is defined as the shares of common stock that have been issued minus any shares of...

Break-even Point Author: Harold Averkamp, CPA, MBA 41 Q&A Popular Recent How do you calculate the break-even point in terms of sales? What is cost accounting What is the break-even point? What is the difference...

in dollars (or other currencies), in units, hours of services provided, etc. The basic calculation of the break-even point in sales dollars for a year is: fixed expenses (fixed manufacturing, fixed SG&A, fixed...

How do you calculate opportunity costs? Author: Harold Averkamp, CPA, MBA Definition of Opportunity Costs Opportunity costs are the profits a company (or person) missed, or the contribution margin that was missed....

Our Explanation of Nonprofit Accounting includes a chart that contrasts the financial statements of a nonprofit (or not-for-profit) organization with those of a for-profit business corporation. There are many examples to...

Our Explanation of Break-even Point illustrates how to determine the number of units or sales dollars that will result in zero net income. The techniques rely on a product's contribution margin or contribution margin...

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