Search results
Results from the WOW.Com Content Network
Depreciation allows the company to spread the expense over the equipment’s life. This results in a more accurate picture of the company’s profitability in high- and low-revenue years ...
Markup (or price spread) is the difference between the selling price of a good or service and its cost.It is often expressed as a percentage over the cost. A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.
A distributed cost is a cost that is spread over many individuals, transactions, or users, rather than being concentrated on few of these. The term can be used generally of costs that are naturally distributed; it is also a specific accounting term for total costs that are calculated to include a fair share of indirect costs.
An asset depreciation at 15% per year over 20 years. In accountancy, depreciation is a term that refers to two aspects of the same concept: first, an actual reduction in the fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wears, and second, the allocation in accounting statements of the original cost of the assets to periods in which the ...
In accounting, as part of financial statements analysis, economic value added is an estimate of a firm's economic profit, or the value created in excess of the required return of the company's shareholders. EVA is the net profit less the capital charge ($) for raising the firm's capital.
Margin on Services (or MoS) is a financial reporting method developed by the Australian Accounting Standards Board that relates to life insurance companies in Australia and New Zealand. Under MoS, the value of future surpluses expected to emerge under a life insurance contract is first determined and then spread over the projected life of the ...
With cash accounting the cost of capital assets is recognized in the budget in the year the expense is incurred. By contrast, under accrual accounting, for an asset that lasts, say 25 years, it is possible to commit resources in one year with the budgetary impact being spread for budget purposes over a 25-year period.
FIFO and LIFO accounting are methods used in managing inventory and financial matters involving the amount of money a company has to have tied up within inventory of produced goods, raw materials, parts, components, or feedstocks. They are used to manage assumptions of costs related to inventory, stock repurchases (if purchased at different ...