In traditional costing it is assumed that if a customer generates positive contribution, then servicing that customer must increase the profits of the company. This ignores the fact that many ‘fixed’ overhead costs are customer specific – such as the time spent by customer service departments. The cost per setup is calculated to be $500 …
Activity-Based Costing ABC: Method and Advantages Defined with Example Leer más »
Part of the financial statements involves an independent auditor’s report on the integrity of the financial statements as well as the internal controls. Additionally, the work conducted by the auditor is to be overseen by the Public Company Accounting Oversight Board (PCAOB). Its creation was included in the Sarbanes-Oxley Act of 2002 to regulate conflict, …
Internal Controls Learn About the Auditor’s Role in Control Activities Leer más »
The calculation of CSPF is taking the cooling capacity (in kW) and divide it by the power consumption (in kW) under certain conditions. The higher the CSPF, the greater is the energy efficiency of the air conditioner. Adam Schultz, the Residential Air Conditioner Platform Manager at Midea, told us that the company is aware of …
Compare AC, Air Conditioner Comparison by Price, Specifications and Star Rating Leer más »
When they are delivered, the company will reduce this liability and increase its revenues. Note that the sales taxes are not part of the company’s sales revenues. Instead, any sales taxes not yet remitted to the government is a current liability. In order to issue a company’s financial statements on a timely basis, it may …
