August 2021

The main benefit of classifying costs as either product or period is that it helps managers understand where their costs are being incurred and how those costs relate to the production process. This information can be used to make decisions about where to allocate resources and how to improve efficiency. In other words, period costs …

The difference between product costs and period costs Read More »

You don’t need to spend this money to create the product, but it is still included in the cost of making a sale. This provides a significant degree of protection and security for account holders contribution margin income statement format in case the bank fails. The insurance covers not only the principal amount deposited in …

Contribution Margin Overview, Guide, Fixed Costs, Variable Costs Read More »

The profit on disposal of PPE of $500 ($2,000 – $1,500) would be adjusted for as a non-cash item under the operating activities (see later). Solution Here we can take the opening balance of PPE and reconcile it to the closing balance by adjusting it for the changes that have arisen in the period that …

Cash flow statements Students Read More »