Obsolete inventory meaning: Obsolete inventory refers to products that a company had purchased or produced but they are no longer salable. The obsolete items may be the result of one or more of the following: Innovations that make the products worthless, inconvenient,… Read More.
Meaning of gains: In financial accounting, gains often pertain to some of a company’s transactions which occur outside of the company’s main business activities. Transactions that are outside of a company’s main business activities are referred to as nonoperating activities. For example,… Read More.
Wages payable refers to the wages that a company's employees have earned, but have not yet been paid. Under the accrual method of accounting, this amount is likely recorded with an adjusting entry at the end of the accounting period so that… Read More.
In accounting the term variance usually refers to the difference between an actual amount and a planned or budgeted amount. For example, if a company's budget for repairs expense is $50,000 and the actual amount ends up being $45,000 or $63,000, there… Read More.
Product cost meaning: In accounting, a retailer’s product cost is the cost paid to a supplier plus any other costs that are necessary to get the product in place and ready for sale. For example, if a retailer pays $40 to its… Read More.
Special journal meaning: A special journal (also known as a specialized journal) is useful in a manual accounting or bookkeeping system to reduce the tedious task of recording both the debit and credit general ledger account names and amounts in a general… Read More.
In accounting the term variance usually refers to the difference between an actual amount and a planned or budgeted amount. For example, if a company's budget for supplies expense is $30,000 and the actual amount is $28,000 or $34,000, there will be… Read More.
First, a flexible budget is a budget in which some amounts will increase or decrease when the level of activity changes. A flexible budget variance is the difference between 1) an actual amount, and 2) the amount allowed by the flexible budget.… Read More.