Search results
Results from the WOW.Com Content Network
a pass = m pass / (m pass + m freight) a freight = m freight / (m pass + m freight) In a refinery, one can assume the input as crude oil and as output gasoline, diesel and heavy fuel oil as well as (flare) losses. The equivalence number method can use the energy content of the products as an allocation key. E is the product of energy density ...
In accounting, the concept of a freight expense or freight spend account can be generalized as a payment for sending out a product to a customer. It falls under the umbrella category of expenses and is treated like other expense accounts in relation to the accounting equation, however, under generally accepted accounting rules, if the freight is Freight expense has a normal debit balance.
This may require considerable recordkeeping. This method cannot be used where the goods or items are indistinguishable or fungible. Average cost. The average cost method relies on average unit cost to calculate cost of units sold and ending inventory. Several variations on the calculation may be used, including weighted average and moving average.
The difference between the cost of an inventory calculated under the FIFO and LIFO methods is called the LIFO reserve (in the example above, it is $750, i.e. $5250 - $4500). This reserve, a form of contra account , is essentially the amount by which an entity's taxable income has been deferred by using the LIFO method.
A company that has a more complex shipping process may choose to go for freight invoice verification. This freight invoice verification process is a flexible solution that allows the customer to use their shipment and package measurements and calculate against the freight quotes and finally compare against the freight invoice.
Using the example above, we can clearly determine all three variables (sales, cost of sales, and gross profit), as all of the information is provided in the question. If for instance, the question did not stipulate both the sales and the cost of sales figures, though the gross profit figure was given, a ratio calculation can then be performed.
Get AOL Mail for FREE! Manage your email like never before with travel, photo & document views. Personalize your inbox with themes & tabs. You've Got Mail!
Total cost of ownership (TCO) is a financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or service. It is a management accounting concept that can be used in full cost accounting or even ecological economics where it includes social costs.